Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 16, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Entity Registrant Name | CSG SYSTEMS INTERNATIONAL, INC. | ||
Entity Central Index Key | 0001005757 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2020 | ||
Amendment Flag | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | CSGS | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 968,792,220 | ||
Entity Common Stock, Shares Outstanding | 32,642,556 | ||
Entity Current Reporting Status | Yes | ||
Entity Shell Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity File Number | 0-27512 | ||
Entity Tax Identification Number | 47-0783182 | ||
Entity Address, Address Line One | 6175 S. Willow Drive | ||
Entity Address, Address Line Two | 10th Floor | ||
Entity Address, City or Town | Greenwood Village | ||
Entity Address, State or Province | CO | ||
Entity Address, Postal Zip Code | 80111 | ||
City Area Code | (303) | ||
Local Phone Number | 200-2000 | ||
Entity Incorporation, State or Country Code | DE | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Title of 12(b) Security | Common Stock, Par Value $0.01 Per Share | ||
Security Exchange Name | NASDAQ | ||
Entity Interactive Data Current | Yes | ||
Documents Incorporated by Reference | Portions of the Registrant’s Definitive Proxy Statement for its 2021 Annual Meeting of Stockholders to be filed |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 188,699 | $ 156,548 |
Short-term investments | 51,598 | 26,109 |
Total cash, cash equivalents and short-term investments | 240,297 | 182,657 |
Settlement assets | 149,785 | 169,327 |
Trade accounts receivable: | ||
Billed, net of allowance of $3,628 and $3,735 | 226,623 | 244,058 |
Unbilled | 37,785 | 33,450 |
Income taxes receivable | 2,167 | 4,297 |
Other current assets | 41,688 | 35,293 |
Total current assets | 698,345 | 669,082 |
Non-current assets: | ||
Property and equipment, net of depreciation of $105,073 and $98,029 | 81,759 | 84,429 |
Operating lease right-of-use assets | 110,756 | 94,847 |
Intangible assets | 26,453 | 32,526 |
Goodwill | 272,322 | 259,164 |
Customer contract costs, net of amortization of $39,893 and $31,526 | 47,238 | 50,746 |
Deferred income taxes | 10,205 | 9,392 |
Other assets | 36,910 | 27,739 |
Total non-current assets | 633,655 | 613,948 |
Total assets | 1,332,000 | 1,283,030 |
Current liabilities: | ||
Current portion of long-term debt | 14,063 | 10,313 |
Operating lease liabilities | 22,651 | 22,442 |
Customer deposits | 39,992 | 38,687 |
Trade accounts payable | 29,834 | 32,704 |
Accrued employee compensation | 86,289 | 77,527 |
Settlement liabilities | 148,819 | 168,342 |
Deferred revenue | 52,357 | 45,094 |
Income taxes payable | 6,627 | 2,806 |
Other current liabilities | 19,383 | 20,778 |
Total current liabilities | 420,015 | 418,693 |
Non-current liabilities: | ||
Long-term debt, net of unamortized discounts of $5,346 and $10,053 | 337,154 | 346,509 |
Operating lease liabilities | 95,926 | 78,936 |
Deferred revenue | 17,275 | 18,552 |
Income taxes payable | 2,436 | 2,543 |
Deferred income taxes | 5,109 | 6,376 |
Other non-current liabilities | 31,690 | 14,759 |
Total non-current liabilities | 489,590 | 467,675 |
Total liabilities | 909,605 | 886,368 |
Stockholders' equity: | ||
Preferred stock, par value $.01 per share; 10,000 shares authorized; zero shares issued and outstanding | ||
Common stock, par value $.01 per share; 100,000 shares authorized; 5,929 and 3,661 shares reserved for employee stock purchase plan and stock incentive plans; 32,713 and 32,891 shares outstanding | 700 | 696 |
Additional paid-in capital | 470,557 | 454,663 |
Treasury stock, at cost; 35,980 and 35,356 shares | (894,126) | (867,817) |
Accumulated other comprehensive income (loss): | ||
Unrealized gains on short-term investments, net of tax | 13 | 16 |
Cumulative foreign currency translation adjustments | (31,151) | (39,519) |
Accumulated earnings | 876,402 | 848,623 |
Total stockholders' equity | 422,395 | 396,662 |
Total liabilities and stockholders' equity | 1,332,000 | 1,283,030 |
Software | ||
Non-current assets: | ||
Intangible assets | 26,453 | 32,526 |
Acquired customer contracts | ||
Non-current assets: | ||
Intangible assets | $ 48,012 | $ 55,105 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Trade accounts receivable-billed, allowance | $ 3,628 | $ 3,735 |
Property and equipment, accumulated depreciation | 105,073 | 98,029 |
Intangibles, accumulated amortization | 139,836 | 125,437 |
Customer contract costs, accumulated amortization | 39,893 | 31,526 |
Long-term debt, unamortized discounts | $ 5,346 | $ 10,053 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares reserved for employee stock purchase plan and stock incentive plans | 5,929,000 | 3,661,000 |
Common stock, shares outstanding | 32,713,000 | 32,891,000 |
Treasury stock, shares | 35,980,000 | 35,356,000 |
Software | ||
Intangibles, accumulated amortization | $ 139,836 | $ 125,437 |
Acquired customer contracts | ||
Intangibles, accumulated amortization | $ 105,778 | $ 93,767 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | |||
Revenue | $ 990,533 | $ 996,810 | $ 875,059 |
Cost of revenue (exclusive of depreciation, shown separately below) | 535,597 | 525,122 | 449,820 |
Other operating expenses: | |||
Research and development | 122,847 | 127,994 | 124,034 |
Selling, general and administrative | 198,279 | 191,329 | 169,308 |
Depreciation | 22,926 | 21,422 | 18,304 |
Restructuring and reorganization charges | 5,328 | 4,834 | 8,661 |
Total operating expenses | 884,977 | 870,701 | 770,127 |
Operating income | 105,556 | 126,109 | 104,932 |
Other income (expense): | |||
Interest expense | (15,500) | (17,748) | (17,667) |
Amortization of original issue discount | (2,983) | (2,819) | (2,664) |
Interest and investment income, net | 1,244 | 1,785 | 2,646 |
Loss on extinguishment of debt | (810) | ||
Other, net | (2,961) | (1,604) | 550 |
Total other | (20,200) | (20,386) | (17,945) |
Income before income taxes | 85,356 | 105,723 | 86,987 |
Income tax provision | (26,645) | (22,953) | (20,857) |
Net income | $ 58,711 | $ 82,770 | $ 66,130 |
Weighted-average shares outstanding: | |||
Basic | 32,010 | 32,051 | 32,488 |
Diluted | 32,278 | 32,465 | 32,855 |
Earnings per common share: | |||
Basic | $ 1.83 | $ 2.58 | $ 2.04 |
Diluted | $ 1.82 | $ 2.55 | $ 2.01 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $ 58,711 | $ 82,770 | $ 66,130 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustments | 8,368 | 3,418 | (14,203) |
Unrealized holding gains (losses) on short-term investments arising during period | (3) | 14 | 90 |
Other comprehensive income (loss), net of tax | 8,365 | 3,432 | (14,113) |
Total comprehensive income, net of tax | $ 67,076 | $ 86,202 | $ 52,017 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Common Stock Warrants | Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Accumulated Earnings |
Balance, beginning of period at Dec. 31, 2017 | $ 342,746 | $ 689 | $ 9,082 | $ 427,091 | $ (814,732) | $ (28,822) | $ 749,438 |
Balance, beginning of period (Cumulative Effect, Period of Adoption, Adjustment) at Dec. 31, 2017 | $ 7,562 | 7,562 | |||||
Balance, beginning of period, shares at Dec. 31, 2017 | 33,516 | ||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201409Member | ||||||
Net income | $ 66,130 | 66,130 | |||||
Unrealized gain on short-term investments, net of tax | 90 | 90 | |||||
Foreign currency translation adjustments | (14,203) | (14,203) | |||||
Total comprehensive income | 52,017 | ||||||
Repurchase of common stock | (34,967) | (7,339) | (27,628) | ||||
Repurchase of common stock, shares | (862) | ||||||
Issuance of common stock pursuant to employee stock purchase plan | 2,311 | 2,311 | |||||
Issuance of common stock pursuant to employee stock purchase plan, shares | 71 | ||||||
Issuance of restricted common stock pursuant to stock-based compensation plans | $ 5 | (5) | |||||
Issuance of restricted common stock pursuant to stock-based compensation plans, shares | 553 | ||||||
Cancellation of restricted common stock issued pursuant to stock-based compensation plans | $ (1) | 1 | |||||
Cancellation of restricted common stock issued pursuant to stock-based compensation plans, shares | (120) | ||||||
Stock-based compensation expense | 19,358 | 19,358 | |||||
Dividends | (28,003) | (28,003) | |||||
Balance, ending of period at Dec. 31, 2018 | $ 361,024 | $ 693 | 9,082 | 441,417 | (842,360) | (42,935) | 795,127 |
Balance, ending of period, shares at Dec. 31, 2018 | 33,158 | ||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201602Member | ||||||
Net income | $ 82,770 | 82,770 | |||||
Unrealized gain on short-term investments, net of tax | 14 | 14 | |||||
Foreign currency translation adjustments | 3,418 | 3,418 | |||||
Total comprehensive income | 86,202 | ||||||
Repurchase of common stock | (30,525) | (5,068) | (25,457) | ||||
Repurchase of common stock, shares | (693) | ||||||
Issuance of common stock pursuant to employee stock purchase plan | 2,227 | 2,227 | |||||
Issuance of common stock pursuant to employee stock purchase plan, shares | 55 | ||||||
Issuance of restricted common stock pursuant to stock-based compensation plans | $ 4 | (4) | |||||
Issuance of restricted common stock pursuant to stock-based compensation plans, shares | 513 | ||||||
Cancellation of restricted common stock issued pursuant to stock-based compensation plans | $ (1) | 1 | |||||
Cancellation of restricted common stock issued pursuant to stock-based compensation plans, shares | (142) | ||||||
Stock-based compensation expense | 19,919 | 19,919 | |||||
Exercise of Comcast stock warrants | (12,911) | $ (9,082) | (3,829) | ||||
Dividends | (29,274) | (29,274) | |||||
Balance, ending of period at Dec. 31, 2019 | $ 396,662 | $ 696 | 454,663 | (867,817) | (39,503) | 848,623 | |
Balance, ending of period, shares at Dec. 31, 2019 | 32,891 | 32,891 | |||||
Net income | $ 58,711 | 58,711 | |||||
Unrealized gain on short-term investments, net of tax | (3) | (3) | |||||
Foreign currency translation adjustments | 8,368 | 8,368 | |||||
Total comprehensive income | 67,076 | ||||||
Repurchase of common stock | (38,168) | (11,859) | (26,309) | ||||
Repurchase of common stock, shares | (878) | ||||||
Issuance of common stock pursuant to employee stock purchase plan | 2,523 | 2,523 | |||||
Issuance of common stock pursuant to employee stock purchase plan, shares | 68 | ||||||
Issuance of restricted common stock pursuant to stock-based compensation plans | $ 7 | (7) | |||||
Issuance of restricted common stock pursuant to stock-based compensation plans, shares | 672 | ||||||
Cancellation of restricted common stock issued pursuant to stock-based compensation plans | (3) | $ (3) | |||||
Cancellation of restricted common stock issued pursuant to stock-based compensation plans, shares | (40) | ||||||
Stock-based compensation expense | 25,237 | 25,237 | |||||
Dividends | (30,932) | (30,932) | |||||
Balance, ending of period at Dec. 31, 2020 | $ 422,395 | $ 700 | $ 470,557 | $ (894,126) | $ (31,138) | $ 876,402 | |
Balance, ending of period, shares at Dec. 31, 2020 | 32,713 | 32,713 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | |||
Net income | $ 58,711 | $ 82,770 | $ 66,130 |
Adjustments to reconcile net income to net cash provided by operating activities- | |||
Depreciation | 22,926 | 21,422 | 18,304 |
Amortization | 43,947 | 45,700 | 44,328 |
Amortization of original issue discount | 2,983 | 2,819 | 2,664 |
Asset impairment | 11,030 | 438 | 1,851 |
Gain on short-term investments and other | (123) | (364) | (101) |
Loss on extinguishment of debt | 810 | ||
Deferred income taxes | (1,033) | (77) | 4,913 |
Stock-based compensation | 25,237 | 19,919 | 19,358 |
Changes in operating assets and liabilities, net of acquired amounts: | |||
Trade accounts receivable, net | 14,659 | (4,015) | (138) |
Other current and non-current assets and liabilities | (10,688) | (17,727) | (23,179) |
Income taxes payable/receivable | 5,405 | 4,771 | 5,055 |
Trade accounts payable and accrued liabilities | (5,752) | (10,317) | (7,146) |
Deferred revenue | 5,718 | 5,737 | 10,492 |
Net cash provided by operating activities | 173,020 | 151,076 | 143,341 |
Cash flows from investing activities: | |||
Purchases of software, property and equipment | (29,397) | (37,319) | (57,104) |
Purchases of short-term investments | (81,824) | (54,258) | (75,022) |
Proceeds from sale/maturity of short-term investments | 56,454 | 52,135 | 190,778 |
Acquisition of and investments in business, net of cash acquired | (11,491) | (17,194) | (144,791) |
Net cash used in investing activities | (66,258) | (56,636) | (86,139) |
Cash flows from financing activities: | |||
Proceeds from issuance of common stock | 2,523 | 2,227 | 2,311 |
Payment of cash dividends | (31,056) | (29,126) | (27,979) |
Repurchase of common stock | (38,123) | (30,918) | (34,726) |
Exercise of common stock warrants | (12,911) | ||
Proceeds from long-term debt | 150,000 | ||
Payments on long-term debt | (10,313) | (7,500) | (125,625) |
Payments of deferred financing costs | (1,490) | ||
Net cash used in financing activities | (76,969) | (78,228) | (37,509) |
Effect of exchange rate fluctuations on cash | 2,358 | 1,059 | (2,659) |
Net increase in cash and cash equivalents | 32,151 | 17,271 | 17,034 |
Cash and cash equivalents, beginning of period | 156,548 | 139,277 | 122,243 |
Cash and cash equivalents, end of period | 188,699 | 156,548 | 139,277 |
Cash paid during the period for- | |||
Interest | 13,681 | 16,064 | 15,857 |
Income taxes | $ 22,431 | $ 18,358 | $ 10,426 |
General
General | 12 Months Ended |
Dec. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
General | 1. General CSG Systems International, Inc. (the “Company”, “CSG”, or forms of the pronoun “we”), a Delaware corporation, was formed in October 1994 and is based in Denver, Colorado. We are a revenue management, customer experience, and payment solutions provider primarily serving the global communications industry. We have over 35 years of experience supporting communications service providers’ management of their revenue, customer communications, and digital ecosystem as they advance their video, voice, data content, and digital services to consumers. Over the years, we have focused our research and development (“R&D”) and acquisition investments on expanding our solution set to address the complex, transformative needs of service providers. We are a member of the S&P SmallCap 600 and Russell 2000 indices. The accompanying Consolidated Financial Statements (“Financial Statements”) are prepared in conformity with generally accepted accounting principles (“GAAP”) in the United States of America (“U.S.”). |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Principles of Consolidation. Our Financial Statements include all of our accounts and our subsidiaries’ accounts. All material intercompany accounts and transactions have been eliminated. Translation of Foreign Currency. Our foreign subsidiaries use the local currency of the countries in which they operate as their functional currency. Their assets and liabilities are translated into U.S. dollars at the exchange rates in effect at the balance sheet date. Revenue, expenses, and cash flows are translated at the average rates of exchange prevailing during the period. Foreign currency translation adjustments are included in comprehensive income in stockholders’ equity. Foreign currency transaction gains and losses are included in the determination of net income. Use of Estimates in Preparation of Our Financial Statements. The preparation of our Financial Statements requires management to make estimates and assumptions that may affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of our Financial Statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The more critical accounting estimates and related assumptions that may affect our financial position and results of operations are in the areas of: (i) revenue recognition; (ii) impairment assessments of long-lived assets; (iii) income taxes; and (iv) loss contingencies. Revenue Recognition. We adopted Accounting Standards Update (“ASU”) 2014-09, (Topic 606) (“ASC 606”) as of January 1, 2018 using the cumulative effect method and recorded a cumulative adjustment increasing beginning retained earnings (net of tax) by approximately $7 million, primarily related to contracts that we were previously required to defer revenue as we did not have vendor specific objective evidence of fair value for certain undelivered elements. Our revenue from customer contracts is measured based on consideration specified in our contracts as discussed further below. We recognize revenue for our products and services separately if they are distinct performance obligations. A product or service, or group of products or services, is a distinct performance obligation if it is separately identifiable from other items in the context of the contract and if our customer can benefit from the product or service on their own or with other resources that are readily available to that customer. We recognize revenue when we satisfy our performance obligations by transferring control of a particular product or service, or group of products or services, to our customers, as described in more detail below. Taxes assessed on our products and services based on governmental authorities at the time of invoicing are excluded from our revenue. Cloud and Related Solutions Our cloud and related solutions revenue include: (i) our software-as-a-service (“SaaS”), revenue management solutions, and various related ancillary services; (ii) our managed services offering in which we operate software solutions (primarily our software solutions) on behalf of our customers; and (iii) cloud-based payment processing transaction services. We contract for our cloud-based revenue management solutions using long-term arrangements whose terms have typically ranged from three to five years. These arrangements consist of a series of multiple services delivered daily or monthly, to include such things as: (i) revenue and customer engagement solutions; (ii) business support services (e.g., workforce management tools, consumer credit verifications, etc.); (iii) digital enablement and delivery functions; and (iv) customer statement invoice printing and mailing services. The fees for these services typically are billed to our customers monthly based upon actual monthly volumes and/or usage of services (e.g., the number of customer accounts maintained on our solutions, the number of transactions processed on our solutions, and/or the quantity and content of the monthly statements and mailings processed through our solutions). For cloud-based revenue management solution contracts, the total contract consideration (including impacts of discounts or incentives) is primarily variable dependent upon actual monthly volumes and/or usage of services; however, these contracts can also include ancillary fixed consideration in the form of one-time, monthly, or annual fees. Pricing of products and services in these contracts is generally at stand-alone selling price, with no allocation of value between the individual performance obligations. In situations where we do an allocation, we determine stand-alone selling price based on established pricing and/or cost, plus an applicable margin. Revenue is generally recognized based on activities performed over a series of daily or monthly periods. We contract for managed services solutions using long-term arrangements whose terms have typically ranged from three to five years. Under managed services agreements, we operate software products (primarily our software solutions) on behalf of our customers: (i) out of a customer’s data center; (ii) out of a data center we own and operate; or (iii) out of a third-party data center we contract with for such services. Managed services can also include us providing other services, such as transitional services, fulfillment, remittance processing, operational consulting, back office, and end-user billing services. For managed services contracts, the total contract consideration is typically a fixed monthly fee, but these contracts may also have variable fee components. The fees for these services typically are billed to our customers on a monthly basis. Unless managed services are included with a software license contract (as discussed further below), there is generally only one performance obligation and revenue is recognized for these arrangements on a ratable basis as the services are performed. Our contracts for payment processing transaction services are generally month-to-month or fixed term with automatic renewals. Services provided under these arrangements primarily include Automated Clearing House (“ACH”) transaction processing, credit/debit card processing, web-based and telephone payment processing, and real-time check verification and authentication services. The fees for these services typically are billed on a monthly basis. Our payment processing services are comprised of one performance obligation. Revenue for payment processing services is based primarily on a fee per transaction or a percentage of the transaction principal and recognized as delivered over a series of daily service periods. Transaction fees collected from customers are recognized as revenue on a gross basis when we are the principal in completing the payment processing transaction. As a principal to the transaction, we control the service of processing payments on our platform. We bear primary responsibility for the fulfillment of the payment service, contract directly with our customers, and have full discretion in determining the fee charged to our customers which is independent of the costs we incur when we utilize payment processors or other financial institutions to perform services on our behalf. We therefore bear full margin risk when completing a payment processing transaction. Transaction fees paid to third-party payment processors and other financial institutions are primarily comprised of interchange and other payment-related fees paid in conjunction with the delivery of service to customers under our payment services contracts. These fees are recognized in cost of revenue. Fees related to set-up or implementation activities for both cloud-based solution and managed services contracts are deferred and recognized ratably over the related service period to which the activities relate. Depending on the significance of variable consideration, number of products/services, complex pricing structures and long-term nature of these types of contracts, the judgments and estimates made in this area could have a significant effect on the amount and timing of revenue recognized in any period. Software and Services Our software and services revenue relates primarily to: (i) software license sales on either a perpetual or term license basis; and (ii) professional services to implement the software. Our software and services contracts are often contracted in bundled arrangements that include not only the software license and related implementation services, and may also include maintenance, managed services, and/or additional professional services. For our software arrangements, total contract consideration is allocated between the separate performance obligations based on stand-alone selling prices for software licenses, cost plus applicable margin for services and established pricing for maintenance. The initial sale of our software products generally requires significant production, modification, or customization, such that the delivery of the software license and related professional services required to implement the software represent one combined performance obligation that is satisfied over time based on hours worked (hours-based method). We are using hours worked on the project, compared against expected hours to complete the project, as the measure to determine progress toward completion as we believe it is the most appropriate metric to measure such progress. The software and services fees are generally fixed fees billed to our customers on a milestone or date basis. The determination of the performance obligations and allocation of value for software license arrangements require significant judgment. We generally determine stand-alone selling prices using pricing calculations (which include regional market factors) for our software license fees and maintenance, and cost-plus margins for services. Additionally, our use of an hours-based method of accounting for software license and other professional services performance obligations that are satisfied over time requires estimates of total project r evenue and costs, along with the expected hours necessary to complete a project. Changes in estimates as a result of additional information or experience on a project as work progresses are inherent characteristics of this method of revenue recognition as we are exposed to business risks in completing these types of performance obligations. The estimation process to support our hours-based recognition method is more difficult for projects of greater length and/or complexity. The judgments and estimates made for these types of obligations could: (i) have a significant effect on r evenue recognized in any period by changing the amount and/or the timing of the r evenue recognized; and/or (ii) impact the expected profitability of a project, including whether an overall loss on an arrangement has occurred. To mitigate the inherent risks in using this hours-based method, we track our current hours expended against our estimates on a periodic basis and continually reevaluate the appropriateness of our estimates. In certain instances, we sell software license volume upgrades, which provide our customers the right to use our software to process higher transaction volume levels. In these instances, we analyze the contract to determine if the volume upgrade is a separate performance obligation and if so, we recognize the value associated with the software license as revenue on the effective date of the volume upgrade. A portion of our professional services revenue is contracted separately (e.g., business consulting services, etc.). Such contracts can either be on a fixed-price or time-and-materials basis. Revenue from fixed-price professional service contracts is recognized using an estimated hours-based method, as these professional services represent a performance obligation that is satisfied over time. Revenue from professional services contracts billed on a time-and-materials basis is recognized as the services are performed. Maintenance Our maintenance revenue relates primarily to support of our software once it has been implemented and placed in service. Maintenance revenue is recognized ratably over the software maintenance period as services are provided. Our maintenance consists primarily of customer and product support, technical updates (e.g., bug fixes, etc.), and unspecified upgrades or enhancements to our software products. If specified upgrades or enhancements are offered in a contract, which are rare, they are accounted for as a separate performance obligation. Maintenance may be invoiced to our customers on a monthly, quarterly, or annual basis. Transaction Price Allocated to the Remaining Performance Obligations As of December 31, 2020, our aggregate amount of the transaction price allocated to the remaining performance obligations is approximately $1 billion, which is made up of fixed fee consideration and guaranteed minimums expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied). We expect to recognize approximately 90% of this amount by the end of 2023, with the remaining amount recognized by the end of 2028. We have excluded from this amount variable consideration expected to be recognized in the future related to performance obligations that are unsatisfied. The majority of our future revenue is related to our cloud and related solution customer contracts that includes variable consideration dependent upon a series of monthly volumes and/or daily usage of services and have contractual terms ending from 2021 through 2028. Disaggregation of Revenue The nature, amount, timing, and uncertainty of our revenue and how revenue and cash flows are affected by economic factors is most appropriately depicted by revenue type, geographic region, and customer vertical. Revenue by type for 2020, 2019, and 2018 was as follows (in thousands): 2020 2019 2018 Revenue: Cloud and related solutions $ 880,822 $ 896,164 $ 766,377 Software and services 63,239 52,364 58,101 Maintenance 46,472 48,282 50,581 Total revenue $ 990,533 $ 996,810 $ 875,059 We use the location of the customer as the basis of attributing revenue to geographic regions. Revenue by geographic region for 2020, 2019, and 2018, as a percentage of our total revenue, was as follows: 2020 2019 2018 Americas (principally the U.S.) 86 % 87 % 85 % Europe, Middle East and Africa (principally Europe) 10 % 9 % 10 % Asia Pacific 4 % 4 % 5 % Total revenue 100 % 100 % 100 % We generate our revenue primarily from the global communications markets; however, we serve an expanding group of customers in markets including financial services, healthcare, media and entertainment companies, and government entities. Revenue by customer vertical for 2020, 2019, and 2018, as a percentage of our total revenue, was as follows: 2020 2019 2018 Broadband/Cable/Satellite 58 % 58 % 64 % Telecommunications 19 % 19 % 21 % Other 23 % 23 % 15 % Total revenue 100 % 100 % 100 % Billed and Unbilled Accounts Receivable. Billed accounts receivable represents our unconditional rights to consideration. Once invoiced, our payment terms are generally between 30-60 days. We rarely have contracts with financing arrangements. Unbilled accounts receivable represents our rights to consideration for work completed but not billed. Unbilled accounts receivable is transferred to billed accounts receivable when the rights become unconditional which is generally at the time of invoicing. The following table rolls forward our unbilled accounts receivable from January 1, 2019 to December 31, 2020 (in thousands): Unbilled Receivables Beginning Balance, January 1, 2019 $ 37,227 Recognized during the period 252,445 Reclassified to receivables (255,983 ) Other (239 ) Ending Balance, December 31, 2019 33,450 Recognized during the period 248,574 Reclassified to receivables (244,574 ) Other 335 Ending Balance, December 31, 2020 $ 37,785 Deferred Revenue. Deferred revenue represents consideration received from customers in advance of services being performed. The following table rolls forward our deferred revenue from January 1, 2019 to December 31, 2020 (in thousands): Deferred Revenue Beginning Balance, January 1, 2019 $ (57,763 ) Revenue recognized that was included in deferred revenue at the beginning of the period 39,352 Consideration received in advance of services performed net of revenue recognized in the current period (44,051 ) Other (1,184 ) Ending Balance, December 31, 2019 (63,646 ) Revenue recognized that was included in deferred revenue at the beginning of the period 40,811 Consideration received in advance of services performed net of revenue recognized in the current period (46,719 ) Other (78 ) Ending Balance, December 31, 2020 $ (69,632 ) Postage. We pass through to our customers the cost of postage that is incurred on behalf of those customers, and typically require an advance payment on expected postage costs. These advance payments are included in customer deposits in the accompanying Consolidated Balance Sheets (“Balance Sheets” or “Balance Sheet”) and are classified as current liabilities regardless of the contract period. We net the cost of postage against the postage reimbursements for those customers where we require advance deposits and include the net amount (which is not material) in cloud and related solutions revenue. Cash and Cash Equivalents. We consider all highly liquid investments with original maturities of three months or less at the date of purchase to be cash equivalents. As of December 31, 2020 and 2019, our cash equivalents consist primarily of institutional money market funds, commercial paper, and time deposits held at major banks. As of December 31, 2020 and 2019, we had $1.7 million and $2.7 million, respectively, of restricted cash that serves to collateralize guarantees and outstanding letters of credit. This restricted cash is included in cash and cash equivalents in our Balance Sheets. Short-term Investments and Other Financial Instruments . Our financial instruments as of December 31, 2020 and 2019 include cash and cash equivalents, short-term investments, accounts receivable, accounts payable, and debt. Due to their short maturities, the carrying amounts of cash equivalents, accounts receivable, and accounts payable approximate their fair value. Our short-term investments and certain cash equivalents are considered “available-for-sale” and are reported at fair value in our Balance Sheets, with unrealized gains and losses, net of the related income tax effect, excluded from earnings and reported in a separate component of stockholders’ equity. Realized and unrealized gains and losses were not material in any period presented. Primarily all short-term investments held by us as of December 31, 2020 and 2019 have contractual maturities of less than two years from the time of acquisition. Our short-term investments at December 31, 2020 and 2019 consisted almost entirely of fixed income securities. Proceeds from the sale/maturity of short-term investments in 2020, 2019, and 2018 were $56.5 million, $52.1 million, and $190.8 million, respectively. The following table represents the fair value hierarchy based upon three levels of inputs, of which Levels 1 and 2 are considered observable and Level 3 is unobservable, for our financial assets measured at fair value (in thousands): December 31, 2020 December 31, 2019 Level 1 Level 2 Total Level 1 Level 2 Total Cash equivalents: Money market funds $ 33,535 $ — $ 33,535 $ 4,847 $ — $ 4,847 Commercial paper — 15,746 15,746 — 26,964 26,964 Corporate debt securities — 1,351 1,351 — — — Short-term investments: Corporate debt securities — 38,672 38,672 — 22,159 22,159 U.S. government agency bonds — 4,642 4,642 — — — Asset-backed securities — 8,284 8,284 — 3,950 3,950 Total $ 33,535 $ 68,695 $ 102,230 $ 4,847 $ 53,073 $ 57,920 Valuation inputs used to measure the fair values of our money market funds were derived from quoted market prices. The fair values of all other financial instruments are based upon pricing provided by third-party pricing services. These prices were derived from observable market inputs. We have chosen not to record our debt at fair value, with changes recognized in earnings each reporting period. The following table indicates the carrying value and estimated fair value of our debt as of the indicated periods (in thousands): December 31, 2020 December 31, 2019 Carrying Fair Carrying Fair Value Value Value Value 2018 Credit Agreement (carrying value including current maturities) $ 126,563 $ 126,563 $ 136,875 $ 136,875 2016 Convertible debt (par value) 230,000 244,663 230,000 262,775 The fair value for our Credit Agreement was estimated using a discounted cash flow methodology, while the fair value for our convertible debt was estimated based upon quoted market prices or recent sales activity, both of which are considered Level 2 inputs. See Note 5 for discussion regarding our debt. Settlement Assets and Settlement Liabilities. Settlement assets and settlement liabilities represent cash collected on behalf of merchants via payment processing services which is held for an established holding period until settlement with the merchant. The holding period is generally one to four business days depending on the payment model and contractual terms with the merchant. During the holding period, cash is held in trust with various major financial institutions and a corresponding liability is recorded for the amounts owed to the merchant. At any given time, there may be differences between the cash held in trust and the corresponding liability due to the timing of operating-related cash transfers. Concentrations of Credit Risk. In the normal course of business, we are exposed to credit risk. The principal concentrations of credit risk relate to cash deposits, cash equivalents, short-term investments, and accounts receivable. We regularly monitor credit risk exposures and take steps to mitigate the likelihood of these exposures resulting in a loss. We hold our cash deposits, cash equivalents, and short-term investments with financial institutions we believe to be of sound financial condition. We are exposed to credit risk related to settlement assets and risk of loss related to our settlement obligations. We hold our settlement assets in major financial institutions we believe to be of sound financial condition. To mitigate the risk of loss due to non-performance or non-payment by a merchant, we perform credit risk evaluations based on multiple criteria and may require a cash deposit from the merchant depending on their risk profile. If a deposit is required, the cash is held in a segregated bank account for the duration of the relationship with the merchant. These deposits are restricted and are fully offset by corresponding liabilities and are included in other assets and other liabilities in our Balance Sheets. We generally do not require collateral or other security to support accounts receivable. We evaluate the credit worthiness of our customers in conjunction with our revenue recognition processes, as well as through our ongoing collectability assessment processes for accounts receivable. We maintain an allowance for doubtful accounts receivable based upon factors surrounding the credit risk of specific customers, historical trends, and other information. We use various judgments and estimates in determining the adequacy of the allowance for doubtful accounts receivable. See Note 3 for additional details of our concentration of accounts receivable. The activity in our allowance for doubtful accounts receivable is as follows (in thousands): 2020 2019 2018 Balance, beginning of year $ 3,735 $ 3,115 $ 4,149 Additions to expense 1,481 778 462 Write-offs (1,532 ) (158 ) (1,659 ) Recoveries — — — Other (56 ) — 163 Balance, end of year $ 3,628 $ 3,735 $ 3,115 Property and Equipment . Property and equipment are recorded at cost (or at estimated fair value if acquired in a business combination) and are depreciated over their estimated useful lives ranging from three to ten years. Leasehold improvements are depreciated over the shorter of their economic life or the lease term. Depreciation expense is computed using the straight-line method for financial reporting purposes. Depreciation expense for all property and equipment is reflected in our Income Statements separately in the aggregate and is not included in the cost of revenue or the other components of operating expenses.. Software. We expend substantial amounts on R&D, particularly for new solutions and services, and enhancements of existing solutions and services. For development of software solutions that are to be licensed by us, we expense all costs related to the development of the software until technological feasibility is established. For development of software to be used internally (e.g., cloud-based systems software), we expense all costs prior to the application development stage. During 2020, 2019, and 2018, we expended $122.8 million, $128.0 million, and $124.0 million, respectively, on R&D projects. We did not capitalize any R&D costs in 2020, 2019, and 2018, as the costs subject to capitalization during these periods were not material. We did not have any capitalized R&D costs included in our December 31, 2020 and 2019 Balance Sheets. Realizability of Long-Lived Assets. We evaluate our long-lived assets, other than goodwill, for possible impairment whenever events or changes in circumstances indicate that the carrying value of these assets may not be recoverable. A long-lived asset is impaired if estimated future undiscounted cash flows associated with that asset are insufficient to recover the carrying amount of the long-lived asset. If deemed impaired, the long-lived asset is written down to its estimated fair value. Goodwill. We evaluate our goodwill for impairment on an annual basis, as well as we may evaluate our goodwill on a more periodic basis (e.g., quarterly) if events occur or circumstances change that could indicate a potential impairment may have occurred. Goodwill is considered impaired if the carrying value of the reporting unit which includes the goodwill is greater than the estimated fair value of the reporting unit. Contingencies. We accrue for a loss contingency when: (i) it is probable that an asset has been impaired, or a liability has been incurred; and (ii) the amount of the loss can be reasonably estimated. The determination of loss contingencies is subject to various judgments and estimates. We do not record the benefit from a gain contingency until the benefit is realized. Earnings Per Common Share (“EPS”). Basic and diluted EPS amounts are presented on the face of our Income Statements. The reconciliation of the basic and diluted EPS denominators related to the common shares is included in the following table (in thousands): 2020 2019 2018 Basic weighted-average common shares 32,010 32,051 32,488 Dilutive effect of restricted common stock 268 282 218 Dilutive effect of Stock Warrants — 132 149 Diluted weighted-average common shares 32,278 32,465 32,855 The Convertible Notes have a dilutive effect only in those periods in which our average stock price exceeds the current effective conversion price (see Note 5). The Stock Warrants have a dilutive effect only in those periods in which our average stock price exceeds the exercise price of $26.68 per warrant (under the treasury stock method) and are not subject to performance vesting conditions (see Note 12). Potentially dilutive common shares related to unvested restricted stock and Stock Warrants were excluded from the computation of diluted EPS, as the effect was antidilutive, and were not material in any period presented. Equity Method Investment. During 2020, we made an additional $1.5 million investment in a payment technology and services company that enables omni-channel digital payments in Latin America. As of December 31, 2020 and 2019, we held an 15% and 8% noncontrolling interest with a carrying value of $7.9 million and $6.6 million, respectively. Stock-Based Compensation . Stock-based compensation represents the cost related to stock-based awards granted to employees and non-employee directors. We measure stock-based compensation cost at the grant date of the award, based on the estimated fair value of the award and recognize the cost (net of estimated forfeitures) over the requisite service period. Income Taxes. We account for income taxes using the asset and liability method. Under this method, income tax expense is recognized for the amount of taxes payable or refundable for the current year. Deferred tax assets and liabilities are recognized for expected future tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. Accounting Pronouncement Adopted. In January 2019 Leases (Topic 842) (“ASC 842”) which required lessees to recognize a lease liability and a right-of-use asset for all leases, including operating leases, with a term greater than twelve months on its balance sheet. As we adopted ASC 842 utilizing the effective date method of transition, prior period information in our Financial Statements was not adjusted. In conjunction with the adoption of ASC 842, we recorded a balance sheet gross up of approximately $80 million, related to the right-of-use assets and lease liabilities, and have included the amortization of the right-of-use-assets in the changes in other current and non-current assets and liabilities and the accretion and payments of lease liabilities in the changes in trade accounts payable and accrued liabilities, respectively, on our Statement of Cash Flows. Accounting Pronouncement Issued But Not Yet Effective. In August 2020, the FASB issued ASU No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”), which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts in an entity’s own equity. ASU 2020-06 also amends the related Earnings Per Share guidance. ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, with early adoption permitted for fiscal years beginning after December 15, 2020, and can be adopted on either a fully retrospective or modified retrospective basis. The Company is currently evaluating the timing, method of adoption and overall impact of this standard on its consolidated financial statements. |
Segment Reporting and Significa
Segment Reporting and Significant Concentration | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting and Significant Concentration | 3. Segment Reporting and Significant Concentration Segment Information. We have evaluated how our chief operating decision maker has organized our company for purposes of making operating decisions and assessing performance, and have concluded that as of December 31, 2020, there is one reportable segment. Significant Customers . A large percentage of our revenue have been generated from our two largest customers, which are Comcast Corporation (“Comcast”) and Charter Communications, Inc. (“Charter”). Revenue from these customers represented the following percentages of our total revenue for the following years: 2020 2019 2018 Comcast 22 % 23 % 25 % Charter 21 % 20 % 20 % Solutions and Services. Our solutions and services help companies around the world monetize and digitally enable the customer experience by accurately capturing, managing, generating, and optimizing the interactions and revenue associated with their customers. We generate a substantial percentage of our revenue from customers utilizing Advanced Convergent Platform (“ACP”), a private cloud-based platform, and related customer communications management solutions (e.g., field force automation, analytics, electronic bill presentment, ACH, etc.) to the North American cable and satellite markets. In addition, a smaller portion of our revenue is generated from our public cloud revenue management and payments solutions serving service providers globally. Finally, we license certain solutions (e.g., mediation, partner management, rating, and charging) and provide our professional services to implement, configure, and maintain these solutions. These solutions are sometimes provided under a managed service arrangement, where we assume long-term responsibility for delivering our solutions and related operations under a defined scope and specified service levels. As of December 31, 2020 and 2019, the percentage of net billed accounts receivable balances attributable to these customers were as follows: As of December 31, 2020 2019 Comcast 19 % 24 % Charter 20 % 24 % We expect to continue to generate a significant percentage of our future revenue from our significant customers. There are inherent risks whenever a large percentage of total revenue is concentrated with a limited number of customers. Should a significant customer: (i) terminate or fail to renew their contracts with us, in whole or in part for any reason; (ii) significantly reduce the number of customer accounts processed on our solutions, the price paid for our solutions and services, or the scope of solutions and services that we provide; or (iii) experience significant financial or operating difficulties, it could have a material adverse effect on our financial position and results of operations. |
Long-Lived Assets
Long-Lived Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Long-Lived Assets | 4. Long-Lived Assets Property and Equipment. Property and equipment at December 31 consisted of the following (in thousands, except years): Useful Lives (Years) 2020 2019 Computer equipment 3-6 $ 87,289 $ 88,701 Leasehold improvements 5-10 25,442 25,778 Operating equipment 3-8 67,097 59,864 Furniture and fixtures 8 7,004 8,115 186,832 182,458 Less - accumulated depreciation (105,073 ) (98,029 ) Property and equipment, net $ 81,759 $ 84,429 Goodwill. We do not have any intangible assets with indefinite lives other than goodwill. A rollforward of goodwill for 2019 and 2020 is as follows (in thousands): January 1, 2019 balance $ 255,816 Adjustments related to prior acquisitions 640 Effects of changes in foreign currency exchange rates 2,708 December 31, 2019 balance 259,164 Tekzenit, Inc. acquisition 9,083 Adjustments related to prior acquisitions (60 ) Effects of changes in foreign currency exchange rates 4,135 December 31, 2020 balance $ 272,322 See Note 7 for discussion of the Tekzenit, Inc. acquisition. Other Intangible Assets. Our other intangible assets subject to ongoing amortization consist of acquired customer contracts and software. Acquired Customer Contracts. As of December 31, 2020 and 2019, the carrying values of our acquired customer contracts were as follows (in thousands): December 31, 2020 December 31, 2019 Gross Gross Carrying Accumulated Net Carrying Accumulated Net Amount Amortization Amount Amount Amortization Amount Acquired customer contracts $ 153,790 $ (105,778 ) $ 48,012 $ 148,872 $ (93,767 ) $ 55,105 Acquired customer contracts as of December 31, 2020 include assets acquired in the Tekzenit, Inc. acquisition (see Note 7). The aggregate amortization related to customer contracts included in our operations for 2020, 2019, and 2018 was as follows (in thousands): 2020 2019 2018 Acquired customer contracts amortization (1) $ 9,963 $ 10,374 $ 7,898 (1) Acquired customer contracts represent assets acquired in our prior business acquisitions. Acquired customer contracts are amortized over their estimated useful lives ranging from three to twenty years based on the approximate pattern in which the economic benefits of the intangible assets are expected to be realized, with the amortization expense included as cost of revenue in our Income Statements. The remaining weighted-average amortization period of the acquired customer contract as of December 31, 2020 was approximately 100 months. Based on the net carrying value of these acquired customer contracts, the estimated amortization for each of the five succeeding fiscal years ending December 31 will be: 2021 – $7.2 million; 2022 – $7.0 million; 2023 – $5.8 million; 2024 – $5.6 million; and 2025 – $5.6 million. Software Software consists of: (i) software and similar intellectual property rights from various business combinations; and (ii) internal use software. As of December 31, 2020 and 2019, the carrying values of our software assets were as follows (in thousands): 2020 2019 Gross Gross Carrying Accumulated Net Carrying Accumulated Net Amount Amortization Amount Amount Amortization Amount Acquired software (2) $ 75,602 $ (70,242 ) $ 5,360 $ 75,370 $ (68,157 ) $ 7,213 Internal use software (3) 90,687 (69,594 ) 21,093 82,593 (57,280 ) 25,313 Total software $ 166,289 $ (139,836 ) $ 26,453 $ 157,963 $ (125,437 ) $ 32,526 The aggregate amortization related to software included in our operations for 2020, 2019, and 2018 was as follows (in thousands): 2020 2019 2018 Acquired software amortization (2) $ 1,853 $ 2,229 $ 1,801 Internal use software amortization (3) 13,216 10,641 9,517 Total software amortization $ 15,069 $ 12,870 $ 11,318 (2) Acquired software represents software intangible assets acquired in our prior business acquisitions, which are amortized over their estimated useful lives ranging from four to eight years. The amortization of acquired software is reflected as a cost of revenue in our Income Statements. (3) Internal use software represents: (i) third-party software licenses; and (ii) the internal and external costs related to the implementation of the third-party software licenses. Internal use software is amortized over its estimated useful life ranging from one to ten years. The remaining weighted-average amortization period of the software intangible assets as of December 31, 2020 was approximately 36 months. Based on the net carrying value of these intangible assets, the estimated amortization for each of the five succeeding fiscal years ending December 31 will be: 2021– $11.7 million; 2022 – $7.2 million; 2023 – $4.6 million; 2024 – $1.5 million; and 2025 – $0.9 million. Customer Contract Costs . As of December 31, 2020 and 2019, the carrying values of our customer contract cost assets, related to those contracts with a contractual term greater than one year, were as follows (in thousands): December 31, 2020 December 31, 2019 Gross Gross Carrying Accumulated Net Carrying Accumulated Net Amount Amortization Amount Amount Amortization Amount Customer contract incentives (4) $ 4,626 $ (2,320 ) $ 2,306 $ 4,626 $ (1,612 ) $ 3,014 Capitalized costs (5) 70,214 (33,104 ) 37,110 68,085 (26,482 ) 41,603 Capitalized commission fees (6) 12,291 (4,469 ) 7,822 9,561 (3,432 ) 6,129 Total customer contact costs $ 87,131 $ (39,893 ) $ 47,238 $ 82,272 $ (31,526 ) $ 50,746 During 2020, we recorded an impairment charge of $10.3 million for the write-off of capitalized customer contract costs related to a discontinued project implementation. This non-cash impairment charge is primarily included in cost of revenue in our Income Statement The aggregate amortization related to our customer contract costs included in our operations for 2020 and 2019 was as follows (in thousands): 2020 2019 2018 Customer contract incentives amortization (4) $ 708 $ 6,018 $ 11,052 Capitalized costs amortization (5) 13,803 12,625 10,304 Capitalized commission fees amortization (6) 2,679 2,136 2,025 Total customer contract costs amortization $ 17,190 $ 20,779 $ 23,381 (4) Customer contract incentives consist principally of incentives provided to new or existing customers to convert their customer accounts to, or retain their customer’s account on, our outsourced solutions and are amortized ratably over the contract period to include renewal periods, if applicable, which as of December 31, 2020, have termination dates that range from 2023 to 2025. The amortization of customer contract incentives is reflected as a reduction of revenue in our Income Statements. (5) Capitalized costs are related to customer conversion/set-up activities and direct material costs to fulfill long-term cloud-based or managed services arrangements. These costs are amortized over the contract period, which as of December 31, 2020, range from 2021 to 2028, based on the transfer of goods or services to which the assets relate, and are included in cost of revenue in our Income Statements. (6) Capitalized commission fees are incremental commissions paid as a result of obtaining a customer contract. These fees are amortized over the contract period based on the transfer of goods or services to which the assets relate, which as of December 31, 2020, range from 2021 to 2026, and are included in selling, general and administrative (“SG&A”) expenses in our Income Statements. Incremental commission fees incurred as a result of obtaining a customer contract are expensed when incurred if the amortization period of the asset that we otherwise would have recognized is one year or less (a practical expedient allowed under ASC 606). |
Debt
Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | 5. Debt As of December 31, 2020 and 2019, our long-term debt was as follows (in thousands): December 31, December 31, 2020 2019 2018 Credit Agreement: Term loan, due March 2023 $ 126,563 $ 136,875 Less – deferred financing costs (1,155 ) (1,715 ) 2018 Term Loan, net of unamortized discounts 125,408 135,160 $200 million revolving loan facility, due March 2023 — — 2016 Convertible Notes: Convertible Notes – Senior convertible notes; due March 15, 2036; cash interest at 4.25% 230,000 230,000 Less – unamortized original issue discount (3,021 ) (6,004 ) Less – deferred financing costs (1,170 ) (2,334 ) 2016 Convertible Notes, net of unamortized discounts 225,809 221,662 Total debt, net of unamortized discounts 351,217 356,822 Current portion of long-term debt, net of unamortized discounts (14,063 ) (10,313 ) Long-term debt, net of unamortized discounts $ 337,154 $ 346,509 2018 Credit Agreement. On March 5, 2018, we entered into a new $350 million credit agreement (the “2018 Credit Agreement”) with a consortium of banks to replace the amended and restated $350 million credit agreement entered into in February 2015, (the “2015 Credit Agreement”) The 2018 Credit Agreement provides borrowings in the form of: (i) a $150 million aggregate principal five-year five-year The interest rates under the 2018 Credit Agreement are based upon our choice of an adjusted LIBOR rate plus an applicable margin of 1.50% - 2.50%, or an alternate base rate plus an applicable margin of 0.50% -1.50%, with the applicable margin, depending on our then-net secured total leverage ratio. We will pay a commitment fee of 0.200% - 0.375% of the average daily unused amount of the 2018 Revolver, with the commitment fee rate also dependent upon our then-net secured total leverage ratio. If the LIBOR rate is no longer available, then our interest rate under the Credit Agreement will be determined by the alternate base rate plus an applicable margin as discussed above. The 2018 Credit Agreement includes mandatory repayments of the aggregate principal amount of the 2018 Term Loan (payable quarterly) for the first, second, third, fourth, and fifth years, with the remaining principal balance due at maturity. The 2018 Credit Agreement has no prepayment penalties and requires mandatory repayments under certain circumstances, including: (i) asset sales or casualty proceeds; and (ii) proceeds of debt or preferred stock issuances. The 2018 Credit Agreement contains customary affirmative covenants. In addition, the 2018 Credit Agreement has customary negative covenants that places limits on our ability to: (i) incur additional indebtedness; (ii) create liens on our property; (iii) make investments; (iv) enter into mergers and consolidations; (v) sell assets; (vi) declare dividends or repurchase shares; (vii) engage in certain transactions with affiliates; (viii) prepay certain indebtedness; and (ix) issue capital stock of subsidiaries. We must also meet certain financial covenants to include: (i) a maximum total leverage ratio; (ii) a maximum first-lien leverage ratio; and (iii) a minimum interest coverage ratio. In conjunction with the 2018 Credit Agreement, we entered into a security agreement in favor of Bank of America N.A, as collateral agent (the “Security Agreement”). Under the Security Agreement and 2018 Credit Agreement, certain of our domestic subsidiaries have guaranteed our obligations, and have pledged substantially all of our assets to secure the obligations under the 2018 Credit Agreement and such guarantees. During the year ended December 31, 2020, we made $10.3 million of principal repayments on our 2018 Credit Agreement. As of December 31, 2020, our interest rate on the 2018 Term Loan is 1.75% (adjusted LIBOR plus 1.50% per annum), effective through March 31, 2021, and our commitment fee on the 2018 Revolver is 0.20%. As of December 31, 2020, we had no borrowings outstanding on our 2018 Revolver and had the entire $200 million available to us. In conjunction with the closing of the 2018 Credit Agreement, we incurred financing costs of $1.5 million. When combined with the remaining deferred financing costs of the 2015 Credit Agreement, financing costs of $2.8 million have been deferred and are being amortized to interest expense using the effective interest method over the related term of the 2018 Credit Agreement. Additionally, as certain lenders from the 2015 Credit Agreement chose not to participate in the 2018 Credit Agreement syndication group, we wrote-off $0.8 million of unamortized debt issuance costs and recognized a loss on extinguishment of that debt. 2016 Convertible Notes. In March 2016, we completed an offering of $230 million of 4.25% senior convertible notes due March 15, 2036 (the “2016 Convertible Notes”) to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. The 2016 Convertible Notes are unsecured obligations and pay 4.25% annual cash interest, payable semiannually in arrears on March 15 and September 15 of each year. The 2016 Convertible Notes will be convertible at the option of the note holders upon the satisfaction of specified conditions and during certain periods. During the period from, and including, December 15, 2021 to the close of business on the business day immediately preceding March 15, 2022 and on or after December 15, 2035, holders may convert all or any portion of their 2016 Convertible Notes at the conversion rate then in effect at any time regardless of these conditions. For the 2016 Convertible Notes presented during this time frame, the settlement amount will be equal to the sum of the daily settlement amounts for each of the following 40 consecutive trading days during the related observation period. Under the terms of the 2016 Convertible Notes, we will adjust the conversion rate for any quarterly dividends exceeding $0.185 per share. As of December 31, 2020, the conversion rate was 17.6656 shares of our common stock per $1,000 principal amount of the 2016 Convertible Notes, which is equivalent to an initial conversion price of $56.61 per share of our common stock. As of December 31, 2010, none of the conversion features have been achieved, and thus, the 2016 Convertible Notes are not convertible by the holders. We will settle conversions of the 2016 Convertible Notes by paying or delivering, as the case may be, cash, shares of our common stock, or a combination thereof, at our election. It is our current intent and policy to settle our conversion obligations as follows: (i) pay cash for 100% of the par value of the 2016 Convertible Notes that are converted; and (ii) to the extent the value of our conversion obligation exceeds the par value, we can satisfy the remaining conversion obligation in our common stock, cash, or a combination thereof. As of December 31, 2020, the value of our conversion obligation did not exceed the par value of the 2016 Convertible Notes. Holders may require us to repurchase the 2016 Convertible Notes for cash on each of March 15, 2022, March 15, 2026, and March 15, 2031, or upon the occurrence of a fundamental change (as defined in the 2016 Convertible Notes Indenture (the “2016 Notes Indenture”)) in each case at a purchase price equal to the principal amount thereof plus accrued and unpaid interest. We may not redeem the 2016 Convertible Notes prior to March 20, 2020. On or after March 20, 2020, we may redeem for cash all or part of the 2016 Convertible Notes if the last reported sale price of our common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which we provide notice of redemption. On or after March 15, 2022, we may redeem for cash all or part of the 2016 Convertible Notes regardless of the sales price condition described in the preceding sentence. In each case, the redemption price will equal the principal amount of the 2016 Convertible Notes to be redeemed, plus accrued and unpaid interest. The 2016 Notes Indenture includes customary terms and covenants, including certain events of default after which the 2016 Convertible Notes may be due and payable immediately. The 2016 Notes Indenture contains customary affirmative covenants, including compliance with terms of certain other indebtedness of the Company over a defined threshold amount. The remaining original issue discount (“OID”) related to the 2016 Convertible Notes is being amortized to interest expense through December 15, 2021, the first date the 2016 Convertible Notes can be put back to us by the holders. Estimated Maturities on Long-Term Debt. As of December 31, 2020 , 2021 2022 2023 Total 2018 Term Loan $ 14,062 $ 15,000 $ 97,500 $ 126,562 2016 Convertible Notes — 230,000 — 230,000 Total long-term debt repayments $ 14,062 $ 245,000 $ 97,500 $ 356,562 Deferred Financing Costs. As of December 31, 2020, net deferred financing costs related to the 2018 Credit Agreement were $1.2 million and are being amortized to interest expense over the related term of the 2018 Credit Agreement (through March 2023). As of December 31, 2020, net deferred financing costs related to the 2016 Convertible Notes were $1.2 million, and are being amortized to interest expense through December 15, 2021, the first date the 2016 Convertible Notes can be put back to us by the holders. The net deferred financing costs are presented as a reduction from the carrying amount of the corresponding debt liability in our Balance Sheets. Interest expense for 2020, 2019, and 2018 includes amortization of deferred financing costs of $1.9 million, $1.8 million, and $1.9 million, respectively. The weighted-average interest rate on our debt borrowings, including amortization of OID, amortization of deferred financing costs, and commitment fees on the revolving loan facility, for 2020, 2019, and 2018, was approximately 5%, 6%, and 5%, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | 6. Leases We have operating leases for: (i) real estate which include both office space and statement production and mailing facilities; (ii) our outsourced data center environment, as discussed further in Note 11; and (iii) operating equipment. Our leases have remaining terms of up to ten years, some of which include options to extend the leases for up to an additional ten years. For leases commencing prior to 2019, we used the noncancelable term to calculate the related right-of-use asset and corresponding lease liability. The exercise of lease renewal options is at our sole discretion. Additionally, certain of our leases include payments that are adjusted periodically for inflation. We have made an accounting policy election not to recognize on our balance sheet, leases with an initial term of twelve months or less, for any class of underlying asset. We have also made an election for real estate leases beginning in 2019 and later, not to separate the lease and non-lease components, but rather account for the entire arrangement as a single lease component (a practical expedient allowed under ASC 842). For our outsourced data center environment agreement, we have concluded that there are lease and non-lease components, and have allocated the consideration in the agreement on a relative stand-alone price basis. Due to the significant assumptions and judgements required in accounting for leases (to include whether a contract contains a lease, the allocation of the consideration, and the determination of the discount rate), the judgements and estimates made could have a significant effect on the amount of assets and liabilities recognized. We sublease certain of our leased real estate to third parties. These subleases have remaining lease terms of up to three years and certain subleases have renewal terms that can extend the lease for up to an additional two years. The components of lease expense were as follows (in thousands): 2020 2019 Operating lease expense $ 26,360 $ 24,670 Variable lease expense 4,518 4,647 Short-term lease expense 625 583 Sublease income (2,066 ) (1,710 ) Total net lease expense $ 29,437 $ 28,190 Other information related to leases was as follows (in thousands, except term and discount rate): 2020 2019 Supplemental Cash Flows Information: Cash paid for amounts included in the measurement of operating lease liabilities $ 21,130 $ 24,006 Right-of-use assets obtained in exchange for new operating lease liabilities 37,987 33,782 Weighted-average remaining lease term - operating leases 69 months 59 months Weighted-average discount rate - operating leases 3.62 % 4.32 % Future minimum lease payments under non-cancelable leases as of December 31, 2020 were as follows (in thousands): 2021 $ 26,013 2022 25,037 2023 23,022 2024 21,827 2025 16,028 Thereafter 19,292 Total future minimum lease payments (1) 131,219 Less: Interest (2) (12,642 ) Total $ 118,577 Current operating lease liabilities $ 22,651 Non-current operating lease liabilities 95,926 Total $ 118,577 (1) For leases commencing prior to 2019, minimum lease payments exclude payments for real estate taxes and non-lease components. (2) We use our functional currency adjusted incremental borrowing rate for the discount rate. Total lease expense for 2018 was $19.0 million. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | 7. Acquisitions Forte Payment Systems, Inc. On October 1, 2018, we acquired Forte for a purchase price of approximately $93 million (approximately $85 million, excluding cash acquired), of which approximately $13 million of the purchase price was initially held back subject to certain tax filings, and then paid in July 2019. Forte was a leading provider of advanced payment solutions. The acquisition accelerated our ability to offer a comprehensive suite of next generation payment solutions that enables service providers to provide a differentiated customer experience while also strengthening our position in the revenue management and payment sector and allowed us to grow our footprint into new verticals. The purchase agreement also includes provisions for $18.8 million of potential future earn-out payments over a four-year Tekzenit, Inc. On January 2, 2020, we acquired Tekzenit Inc. (“Tekzenit”) for a purchase price of approximately $10 million. This acquisition will allow us to accelerate our go-to-market approach serving customers who are focused on improving their customers’ experience while transforming their business. The purchase agreement includes provisions for additional purchase price (“Provisional Purchase Price”) payments in the form of earn-out and qualified sales payments for up to $10 million over a three-year As of December 31, 2020, the purchase accounting for the Tekzenit acquisition was complete. We recorded goodwill of $9.1 million and acquired customer contracts of $2.9 million and liabilities assumed primarily include the contingent purchase price liabilities of $1.5 million. |
Restructuring and Reorganizatio
Restructuring and Reorganization Charges | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring And Related Activities [Abstract] | |
Restructuring and Reorganization Charges | 8. Restructuring and Reorganization Charges Restructuring and reorganization charges are expenses that generally result from cost reduction initiatives and/or significant changes to our business, to include such things as involuntary employee terminations, changes in management structure or skillset, divestitures of businesses, facility consolidations and abandonments, impairment of acquired intangible assets, and fundamental reorganizations impacting operational focus and direction. The following are the key restructuring and reorganizational activities we incurred over the last three years that have impacted our results from operations: During 2020 we implemented the following restructuring activities: • We reduced our workforce by approximately 80 employees, primarily in North America, as a result of organizational changes and efficiencies. As a result, we incurred restructuring charges related to involuntary terminations of $4.2 million During 2019 we implemented the following restructuring activities: • We reduced our workforce by approximately 70 employees, primarily in North America, as a result of organizational changes and efficiencies. As a result, we incurred restructuring charges related to involuntary terminations of $2.5 million. During 2018 we implemented the following restructuring activities: • We reduced our workforce by approximately 170 employees as a result of organizational changes made to pursue global opportunities and efficiencies. As a result, we incurred restructuring charges related to involuntary terminations of $6.2 million. • We closed one of our print facilities. As a result, we incurred restructuring charges related to involuntary terminations and impairment of assets of $2.7 million. • We reversed a liability related to a previous disposition of a business resulting in a reduction in restructuring charges of $2.3 million. The activities discussed above resulted in total charges for 2020, 2019, and 2018 of $5.3 million, $4.8 million, and $8.7 million, respectively, which have been reflected as a separate line item in our Income Statements. The activity in the business restructuring and reorganization reserves during 2020, 2019, and 2018 is as follows (in thousands): Disposition of Termination Facilities Business Benefits Abandonment Operations Other Total January 1, 2018, balance $ 1,116 $ 3,032 $ — $ — $ 4,148 Charged to expense during period 6,555 1,981 (2,330 ) 2,455 8,661 Cash payments (6,744 ) (2,625 ) — — (9,369 ) Adjustment for asset impairment — — — (1,851 ) (1,851 ) Other 475 546 2,330 (604 ) 2,747 December 31, 2018, balance 1,402 2,934 — — 4,336 Charged to expense during period 2,499 — — 2,335 4,834 Cash payments (3,551 ) — — (1,987 ) (5,538 ) Adjustment for asset impairment — — — (438 ) (438 ) Adjustment for adoption of ASC 842 (1) — (2,934 ) — — (2,934 ) Other 472 — — 90 562 December 31, 2019, balance 822 — — — 822 Charged to expense during period 4,152 — — 1,176 5,328 Cash payments (4,042 ) — — (504 ) (4,546 ) Adjustment for asset impairment — — — (672 ) (672 ) Other 1 — — — 1 December 31, 2020, balance $ 933 $ — $ — $ — $ 933 (1) With the adoption of ASC 842 on January 1, 2019, the facilities abandonment liabilities of $2.9 million were offset against our initial lease right-of-use assets on our Balance Sheet. As of December 31, 2020, $0.9 million of the business restructuring and reorganization reserves were included in current liabilities. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 9. Income Taxes Income Tax Provision. The components of net income before income taxes are as follows (in thousands): 2020 2019 2018 Domestic $ 77,721 $ 93,510 $ 80,234 India 6,245 4,769 2,173 Foreign Other 1,390 7,444 4,580 Total $ 85,356 $ 105,723 $ 86,987 The income tax provision consists of the following (in thousands): 2020 2019 2018 Current: Federal $ 17,760 $ 16,616 $ 7,814 State 5,373 2,910 4,589 India 1,788 1,004 757 Foreign Other 2,990 2,515 2,784 27,911 23,045 15,944 Deferred: Federal (497 ) (1,943 ) 4,584 State (1,031 ) 624 (619 ) India (387 ) 36 (152 ) Foreign Other 649 1,191 1,100 (1,266 ) (92 ) 4,913 Total income tax provision $ 26,645 $ 22,953 $ 20,857 The effective tax rate in India of 22.4%, 21.8% and 27.8% in 2020, 2019 and 2018 respectively, differs from the statutory rate of approximately 29% due primarily to certain operations occurring within a Special Economic Zone (“SEZ”). Under the terms of SEZ, CSG qualifies for a reduced income tax rate on operations within the SEZ for a period of up to 10 years, beginning in 2018. The difference between our income tax provision computed at the statutory Federal income tax rate and our financial statement income tax is summarized as follows (in thousands): 2020 2019 2018 Provision at Federal rate of 21% $ 17,925 $ 22,202 $ 18,267 State income taxes, net of Federal impact 3,430 2,792 2,985 Research and experimentation credits (2,705 ) (3,314 ) (4,040 ) Stock award vesting (540 ) (3,661 ) (1,513 ) Tax uncertainties (403 ) (56 ) (122 ) Section 199 manufacturing deduction — — 168 Section 162(m) compensation limitation 4,494 978 951 Foreign rate differential 462 930 1,238 Valuation allowance for deferred tax assets 1,002 (495 ) (177 ) Withholding Tax 2,572 2,408 2,070 Other impact of foreign operations 621 227 685 Statutory rate change 71 (10 ) (87 ) Other (284 ) 952 432 Total income tax provision $ 26,645 $ 22,953 $ 20,857 We have undistributed earnings of approximately $52 million from certain foreign subsidiaries. We intend to indefinitely reinvest these foreign earnings, therefore, a provision has not been made for foreign withholding taxes that might be payable upon remittance of such earnings. Determination of the amount of unrecognized deferred tax liability on unremitted foreign earnings is not practicable because of the complexities of the hypothetical calculation. Deferred Income Taxes. Net deferred income tax assets as of December 31, 2020 and 2019 are as follows (in thousands): 2020 2019 Deferred income tax assets $ 59,895 $ 71,343 Deferred income tax liabilities (33,099 ) (48,411 ) Valuation allowance (21,700 ) (19,916 ) Net deferred income tax assets $ 5,096 $ 3,016 The components of our net deferred income tax assets (liabilities) as of December 31, 2020 and 2019 are as follows (in thousands): 2020 2019 Net deferred income tax assets: Accrued expenses and reserves $ 12,587 $ 8,810 Stock-based compensation 3,285 4,844 Software (1,532 ) (1,556 ) Client contracts and related intangibles (5,199 ) (7,771 ) Goodwill (9,109 ) (7,431 ) Net operating loss carryforwards 26,893 25,989 Property and equipment (8,816 ) (4,410 ) Deferred revenue 4,020 1,307 State Taxes 1,804 1,387 Contingent payments (1,017 ) (1,710 ) Foreign exchange gain/loss 1,406 1,340 Operating lease right-of-use assets and lease liabilities 1,962 1,611 Other 512 522 Total deferred income tax assets 26,796 22,932 Less: valuation allowance (21,700 ) $ (19,916 ) Net deferred income tax assets $ 5,096 $ 3,016 We regularly assess the likelihood of the future realization of our deferred income tax assets. To the extent we believe that it is more likely than not that a deferred income tax asset will not be realized, a valuation allowance is established. As of December 31, 2020, we believe we will generate sufficient taxable income in the future such that we will realize 100% of the benefit of our U.S. Federal deferred income tax assets, thus no valuation allowance has been established. As of December 31, 2020, we have deferred income tax assets net of federal benefit related to state and foreign income tax jurisdictions of $4.0 million and $29.7 million, respectively, and have established valuation allowances against those state and foreign income tax deferred income tax assets of $2.1 million and $19.6 million, respectively. As of December 31, 2020 and 2019, we have an acquired U.S. Federal net operating loss (“NOL”) carryforward of approximately $24 million and $29 million, respectively, which will begin to expire in 2024 and can be utilized through 2030. The acquired U.S. Federal NOL carryforward is attributable to the pre-acquisition periods of acquired businesses. The annual utilization of this U.S. Federal NOL carryforward is limited pursuant to Section 382 of the Internal Revenue Code of 1986, as amended. In addition, as of December 31, 2020 and 2019, we have: (i) state NOL carryforwards of approximately $49 million and $51 million, respectively, which will expire beginning in 2021 and end in 2045; and (ii) foreign subsidiary NOL carryforwards of approximately $107 million and $96 million, respectively, which will expire beginning in 2034, with a portion of the losses available over an indefinite period of time. Accounting for Uncertainty in Income Taxes. We are required to estimate our income tax liability in each jurisdiction in which we operate, including U.S. Federal, state, and foreign income tax jurisdictions. Various judgments and estimates are required in evaluating our tax positions and determining our provisions for income taxes. There are certain transactions and calculations for which the ultimate income tax determination may be uncertain. In addition, we may be subject to examination of our income tax returns by various foreign, federal, state, or local tax authorities, which could result in adverse outcomes. For these reasons, we establish a liability associated with unrecognized tax benefits based on estimates of whether additional taxes and interest may be due. This liability is adjusted based upon changing facts and circumstances, such as the closing of a tax audit, the expiration of a statute of limitations or the refinement of an estimate. A reconciliation of the beginning and ending balances of our liability for unrecognized tax benefits is as follows (in thousands): 2020 2019 2018 Balance, beginning of year $ 1,540 $ 1,668 $ 1,915 Purchase accounting adjustment related to acquisitions 160 — — Lapse of statute of limitations (313 ) (420 ) (226 ) Additions for tax positions of prior years 111 322 85 Reductions for tax positions of prior years (105 ) (30 ) (106 ) Balance, end of year $ 1,393 $ 1,540 $ 1,668 We recognize interest and penalty expense associated with our liability for unrecognized tax benefits as a component of income tax expense in our Income Statements. In addition to the $1.4 million, $1.5 million, and $1.7 million of liability for unrecognized tax benefits as of December 31, 2020, 2019, and 2018, we had $0.6 million, for each period, of income tax-related accrued interest, net of any federal benefit of deduction. If recognized, the $1.4 million of unrecognized tax benefits as of December 31, 2020, would favorably impact our effective tax rate in future periods. We file income tax returns in the U.S. Federal jurisdiction, various U.S. state and local jurisdictions, and many foreign jurisdictions. The U.S., U.K., India, and Australia are the primary taxing jurisdictions in which we operate. The years open for audit vary depending on the taxing jurisdiction. We estimate that it is reasonably possible that the amount of gross unrecognized tax benefits will decrease by up to $0.3 million over the next twelve months due to completion of audits and the expiration of statute of limitations. |
Employee Retirement Benefit Pla
Employee Retirement Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Retirement Benefit Plans | 10. Employee Retirement Benefit Plans We sponsor a defined contribution plan covering substantially all of our U.S.-based employees. Participants may contribute up to 100% of their eligible pay, subject to certain limitations, as pretax, salary deferral contributions. We make certain matching, and at our discretion, non-elective employer contributions to the plan. All contributions are subject to certain IRS limitations. The expense related to these contributions for 2020, 2019, and 2018 was $12.1 million, $11.3 million, and $12.8 million, respectively. We also have defined contribution-type plans for certain of our non-U.S.-based employees. The total contributions made to these plans in 2020, 2019, and 2018 were $4.8 million, $4.1 million, and $4.5 million, respectively. |
Commitments, Guarantees and Con
Commitments, Guarantees and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments, Guarantees and Contingencies | 11. Commitments, Guarantees and Contingencies Service Agreements. We have an agreement with Ensono, Inc. (“Ensono”) to provide us outsourced computing services through September 30, 2025. We outsource the computer processing and related services required for the operation of our ACP solutions. Our ACP proprietary software and other software applications are run in an outsourced data center environment in order to obtain the necessary computer processing capacity and other computer support services without us having to make the substantial capital and infrastructure investments that would be necessary for us to provide these services internally. Our customers are connected to the outsourced data center environment through a combination of private and commercially provided networks. Our ACP cloud-based solutions are generally considered to be mission critical customer management systems by our customers. As a result, we are highly dependent upon Ensono for system availability, security, and response time Guarantees . In the ordinary course of business, we may provide guarantees in the form of bid bonds, performance bonds, or standby letters of credit. At December 31, 2020, we had $3.7 million of restricted assets used to collateralize these guarantees, with $1.7 million included in cash and cash equivalents and $2.0 million included in other non-current assets. We have bid bonds and performance guarantees in form of surety bonds issued through a third-party of $1.5 million that were not required to be recorded on our Consolidated Balance Sheet. We are ultimately liable for claims that may occur against these guarantees. We have no history of material claims or are aware of circumstances that would require us to pay under any of these arrangements. We also believe that the resolution of any claim that may arise in the future, either individually or in the aggregate, would not be material to our Financial Statements. Additionally, we have money transmitter bonds issued through a third-party for the benefit of various states to comply with the states’ financial requirements and industry regulations for money transmitter licenses. At December 31, 2020, we had total aggregate money transmitter bonds of approximately $14 million outstanding. Warranties. We generally warrant that our solutions and related offerings will conform to published specifications, or to specifications provided in an individual customer arrangement, as applicable. The typical warranty period is 90 days from delivery of the solution or offering. For certain service offerings we provide a limited warranty for the duration of the services provided. We generally warrant that services will be performed in a professional and workmanlike manner. The typical remedy for breach of warranty is to correct or replace any defective deliverable, and if not possible or practical, we will accept the return of the defective deliverable and refund the amount paid under the customer arrangement that is allocable to the defective deliverable. Our contracts also generally contain limitation of damages provisions in an effort to reduce our exposure to monetary damages arising from breach of warranty claims. Historically, we have incurred minimal warranty costs, and as a result, do not maintain a warranty reserve. Solution and Services Indemnifications. Our arrangements with our customers generally include an indemnification provision that will indemnify and defend a customer in actions brought against the customer that claim our products and/or services infringe upon a copyright, trade secret, or valid patent. Historically, we have not incurred any significant costs related to such indemnification claims, and as a result, do not maintain a reserve for such exposure. Claims for Company Non-performance. Our arrangements with our customers typically limit our liability for breach to a specified amount of the direct damages incurred by the customer resulting from the breach. From time-to-time, these arrangements may also include provisions for possible liquidated damages or other financial remedies for our non-performance, or in the case of certain of our outsourced customer care and billing solutions, provisions for damages related to service level performance requirements. The service level performance requirements typically relate to system availability and timeliness of service delivery. As of December 31, 2020, we believe we have adequate reserves, based on our historical experience, to cover any reasonably anticipated exposure as a result of our nonperformance for any past or current arrangements with our customers. Indemnifications Related to Officers and the Board of Directors. We have agreed to indemnify members of our Board of Directors (the “Board”) and certain of our officers if they are named or threatened to be named as a party to any proceeding by reason of the fact that they acted in such capacity. We maintain directors’ and officers’ (“D&O”) insurance coverage to protect against such losses. We have not historically incurred any losses related to these types of indemnifications and are not aware of any pending or threatened actions or claims against any officer or member of our Board. As a result, we have not recorded any liabilities related to such indemnifications as of December 31, 2020. In addition, as a result of the insurance policy coverage, we believe these indemnification agreements are not significant to our results of operations. Legal Proceedings. From time-to-time, we are involved in litigation relating to claims arising out of our operations in the normal course of business. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders Equity Note [Abstract] | |
Stockholders' Equity | 12. Stockholders’ Equity Stock Repurchase Program. We currently have a stock repurchase program, approved by our Board, authorizing us to repurchase shares of our common stock from time-to-time as market and business conditions warrant (the “Stock Repurchase Program”). During 2020, 2019, and 2018, we repurchased 624,000 shares of our common stock for $26.3 million (weighted–average price of $42.13 per share), 576,000 shares of our common stock for $25.5 million (weighted-average price of $44.17 per share), and 704,000 shares of our common stock for $27.6 million (weighted-average price of $39.23 per share), respectively, under a Securities and Exchange Commission (“SEC”) Rule 10b5-1 Plan. As of December 31, 2020, the remaining number of shares available for repurchase under the Stock Repurchase Program totaled 4.3 million shares. Stock Repurchases for Tax Withholdings. In addition to the above-mentioned stock repurchases, during 2020, 2019, and 2018, we repurchased and then cancelled approximately 254,000 shares, 117,000 shares, and 159,000 shares for $11.9 million, $5.1 million, and $7.4 million, respectively, of common stock from our employees in connection with minimum tax withholding requirements resulting from the vesting of restricted stock under our stock incentive plans Cash Dividend. During 2020, 2019, and 2018 our Board approved total cash dividends of $0.94 per share, $0.89 per share, and $0.84 per share of common stock, totaling $30.9 million, $29.4 million, and $28.1 million, respectively. Warrants . In 2014, in conjunction with the execution of an amendment to our current agreement with Comcast Corporation (“Comcast), we issued stock warrants (the “Warrant Agreement”) for the right to purchase up to 2.9 million shares of our common stock (the “Stock Warrants”) as an additional incentive for Comcast to convert customer accounts onto our ACP cloud-based solutions based on various milestones. The Stock Warrants have a ten-year Of the total Stock Warrants issued, 1.9 million Stock Warrants have vested and been exercised. Comcast exercised their remaining 0.4 million vested Stock Warrants in December 2019, which we net cash settled under the provision of the Warrant Agreement. The fair value of the Stock Warrants were $24.6 million (weighted-average price of $56.12 per share), resulting in a net cash settlement of $12.9 million. The difference between the net cash settlement and the $9.1 million carrying value of the Stock Warrants was recorded as an adjustment to additional paid-in capital. As of December 31, 2020, 1.0 million Stock Warrants remain issued, none of which were vested. The remaining unvested Stock Warrants will be accounted for as a customer contract cost asset once the performance conditions necessary for vesting are considered probable. Once vested, Comcast may exercise the Stock Warrants and elect either physical delivery of common shares or net share settlement (cashless exercise). Alternatively, the exercise of the Stock Warrants may be settled with cash based solely on our approval, or if Comcast were to beneficially own or control in excess of 19.99% of the common stock or voting of the Company. |
Equity Compensation Plans
Equity Compensation Plans | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Equity Compensation Plans | 13. Equity Compensation Plans Stock Incentive Plan . In May 2020, our stockholders approved an increase of 3.6 million shares authorized for issuances under the Amended and Restated 2005 Stock Incentive Plan (the “2005 Plan”), from 21.4 million shares to 25.0 million shares. Shares reserved under the 2005 Plan can be granted to officers and other key employees of our company and its subsidiaries and to non-employee directors of our company in the form of stock options, stock appreciation rights, performance unit awards, restricted stock awards, or stock bonus awards. Shares granted under the 2005 Plan in the form of a performance unit award, restricted stock award, or stock bonus award are counted toward the aggregate number of shares of common stock available for issuance under the 2005 Plan as two shares for every one share granted or issued in payment of such award. As of December 31, 2020, 5.8 million shares were available for issuance, with 5.5 million shares available for grant. Restricted Stock . We generally issue new shares (versus treasury shares) to fulfill restricted stock award grants. Restricted stock awards are granted at no cost to the recipient. Historically, our restricted stock awards have vested annually primarily over two to four years with no restrictions other than the passage of time (i.e., the shares are released upon calendar vesting with no further restrictions) (or “Time-Based Awards”). Unvested Time-Based Awards are typically forfeited and cancelled upon termination of employment with our company. Certain Time-Based Awards become fully vested (i.e., vesting accelerates) upon a change in control, as defined, and the subsequent involuntary termination of employment, or death. The fair value of the Time-Based Awards (determined by using the closing market price of our common stock on the grant date) is charged to expense on a straight-line basis over the requisite service period for the entire award. We also issue restricted stock shares to key members of management that vest upon meeting pre-established financial performance objectives (“Performance-Based Awards”). The structure of the performance goals for the Performance-Based Awards has been approved by our stockholders. Certain Performance-Based Awards become fully vested (i.e., vesting accelerates) upon a change in control, as defined, and the subsequent involuntary termination of employment. The fair value of the Performance-Based Awards (determined by using the closing market price of our common stock on the grant date) is charged to expense on a straight-line basis over a two-year During 2020, market-based awards for 0.1 million restricted common stock shares were granted to certain members of executive management which vest upon meeting pre-established share price targets over a four-year A summary of our unvested restricted stock activity during 2020 is as follows (shares in thousands): 2020 Shares Weighted- Average Grant Date Fair Value Unvested awards, beginning 1,117 $ 42.60 Awards granted 695 40.86 Awards forfeited/cancelled (64 ) 40.53 Awards vested (707 ) 43.15 Unvested awards, ending 1,041 $ 41.31 The weighted-average grant date fair value per share of restricted stock shares granted during 2020, 2019, and 2018 was $40.86, $41.69, and $45.57, respectively. The total market value of restricted stock shares vesting during 2020, 2019, and 2018 was $32.8 million, $17.0 million, and $22.7 million, respectively. 1996 Employee Stock Purchase Plan. As of December 31, 2020, we have an employee stock purchase plan whereby 1.7 million shares of our common stock have been reserved for sale to our U.S. employees through payroll deductions. The price for shares purchased under the plan is 85% of market value on the last day of the purchase period. Purchases are made at the end of each month. During 2020, 2019, and 2018, 68,552 shares, 54,949 shares, and 68,902 shares, respectively, were purchased under the plan for $2.5 million ($32.20 to $42.35 per share), $2.3 million ($30.76 to $48.99 per share), and $2.4 million ($27.00 to $39.68 per share), respectively. As of December 31, 2020, 153,708 shares remain eligible for purchase under the plan. Stock-Based Compensation Expense. We recorded stock-based compensation expense of $25.2 million, $19.9 million, and $19.4 million, respectively, for 2020, 2019, and 2018. As of December 31, 2020, there was $26.8 million of total compensation cost related to unvested awards not yet recognized. This amount, excluding the impact of forfeitures, is expected to be recognized over a weighted-average period of 2.3 years. We recorded a deferred income tax benefit related to stock-based compensation expense during 2020, 2019, and 2018, of $5.8 million, $4.3 million, and $4.4 million, respectively. The actual income tax benefit realized for the tax deductions from the vesting of restricted stock for 2020, 2019, and 2018, totaled $4.0 million, $3.9 million, and $5.3 million, respectively. Modifications to Stock-Based Awards. In August 2020, we entered into a Separation Agreement (the “Separation Agreement”), with our then-current President and Chief Executive Officer (“CEO”) which included a provision that accelerated the vesting of approximately 198,000 shares of unvested restricted stock on December 30, 2020. This modification resulted in a reversal of stock-based compensation expense in the third quarter of 2020 of $2.7 million. The fair value of the modified award of $8.4 million was recognized ratably from the date of modification through the resignation date, all of which was recognized in 2020. |
Unaudited Quarterly Financial D
Unaudited Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Unaudited Quarterly Financial Data | 14. Unaudited Quarterly Financial Data Quarter Ended March 31 June 30 September 30 December 31 (in thousands, except per share amounts) 2020: Total revenue (1) $ 245,617 $ 240,321 $ 244,108 $ 260,487 Total cost of revenue (exclusive of depreciation) 131,206 138,153 131,073 135,165 Operating income (1)(2)(3)(4) 33,159 19,775 28,947 23,675 Income before income taxes (1)(2)(3)(4) 28,676 14,250 22,742 19,688 Income tax provision (5) (7,162 ) (3,884 ) (9,176 ) (6,423 ) Net income (1)(2)(3)(4)(5) 21,514 10,366 13,566 13,265 Basic earnings per common share (1)(2)(3)(4)(5) $ 0.67 $ 0.32 $ 0.42 $ 0.42 Diluted earnings per common share (1)(2)(3)(4)(5) 0.66 0.32 0.42 0.41 2019: Total revenue $ 244,793 $ 245,856 $ 251,414 $ 254,747 Total cost of revenue (exclusive of depreciation) 128,963 132,234 132,054 131,871 Operating income (2) 32,093 30,338 33,420 30,258 Income before income taxes (2) 25,851 26,837 28,821 24,214 Income tax provision (5) (6,600 ) (7,458 ) (7,262 ) (1,633 ) Net income (2)(5) 19,251 19,379 21,559 22,581 Basic earnings per common share (2)(5) $ 0.60 $ 0.60 $ 0.67 $ 0.71 Diluted earnings per common share (2)(5) 0.59 0.60 0.66 0.70 ( 1 ) During the second quarter of 2020, we began to experience extended sales and implementation cycles and processing volume reductions resulting from the economic slowdown caused by the COVID-19 pandemic. However, we had sequential quarterly growth in both the third and fourth quarters of 2020 reflecting a stabilization of these sales and implementation cycles and a rebound in processing volumes. ( 2 ) During the first, second, third, and fourth quarters of 2020 we incurred restructuring and reorganization charges of $1.0 million, $2.5 million, $0.8 million, and $1.0 million, respectively, or $0.02, $0.06, $0.02, and $0.02 per diluted share. During the second, third, and fourth quarters of 2019 we incurred restructuring and reorganization charges of $1.8 million, $1.3 million, and $1.6 million, respectively, or $0.04, $0.03, and $0.04 per diluted share. See Note 8 for further discussion of our restructuring and reorganization activities. ( 3 ) During the second quarter of 2020 we wrote-off approximately $10 million of deferred contract costs resulting from the discontinuance of a project implementation (see Note 4). ( 4 ) During the third and fourth quarters of 2020, we incurred executive transition costs of $1.8 and $11.2 million, respectively, or $0.03 and $0.23 per diluted share, related to the planned departure of our then-current CEO under terms of his separation agreement. These costs relate to compensation, benefits, and other payments pursuant to the terms of his employment agreement and accelerated vesting of unvested restricted stock awards that were recognized over his remaining service term (see Note 13). ( 5 ) Fluctuations in our effective income tax rate between quarters generally relates to the accounting for discrete income tax items in any given quarter, and revisions of estimates for certain income tax components during the year. For 2020: Our effective income tax rates for the first, second, third, and fourth quarters were 25%, 27%, 40%, and 33%, respectively. The third and fourth quarter effective income tax rates were primarily impacted negatively by the disallowance of compensation relating to the executive transition costs. For 2019: Our effective income tax rates for the first, second, third, and fourth quarters were 26%, 28%, 25%, and 7%, respectively. The fourth quarter effective income tax rate was positively impacted by an approximately $4 million net income tax benefit we received as a result of Comcast’s exercise of their remaining 0.4 million of vested common stock warrants (see Note 12). |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Principles of Consolidation | Principles of Consolidation. Our Financial Statements include all of our accounts and our subsidiaries’ accounts. All material intercompany accounts and transactions have been eliminated. |
Translation of Foreign Currency | Translation of Foreign Currency. Our foreign subsidiaries use the local currency of the countries in which they operate as their functional currency. Their assets and liabilities are translated into U.S. dollars at the exchange rates in effect at the balance sheet date. Revenue, expenses, and cash flows are translated at the average rates of exchange prevailing during the period. Foreign currency translation adjustments are included in comprehensive income in stockholders’ equity. Foreign currency transaction gains and losses are included in the determination of net income. |
Use of Estimates in Preparation of Our Financial Statements | Use of Estimates in Preparation of Our Financial Statements. The preparation of our Financial Statements requires management to make estimates and assumptions that may affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of our Financial Statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The more critical accounting estimates and related assumptions that may affect our financial position and results of operations are in the areas of: (i) revenue recognition; (ii) impairment assessments of long-lived assets; (iii) income taxes; and (iv) loss contingencies. |
Revenue Recognition | Revenue Recognition. We adopted Accounting Standards Update (“ASU”) 2014-09, (Topic 606) (“ASC 606”) as of January 1, 2018 using the cumulative effect method and recorded a cumulative adjustment increasing beginning retained earnings (net of tax) by approximately $7 million, primarily related to contracts that we were previously required to defer revenue as we did not have vendor specific objective evidence of fair value for certain undelivered elements. Our revenue from customer contracts is measured based on consideration specified in our contracts as discussed further below. We recognize revenue for our products and services separately if they are distinct performance obligations. A product or service, or group of products or services, is a distinct performance obligation if it is separately identifiable from other items in the context of the contract and if our customer can benefit from the product or service on their own or with other resources that are readily available to that customer. We recognize revenue when we satisfy our performance obligations by transferring control of a particular product or service, or group of products or services, to our customers, as described in more detail below. Taxes assessed on our products and services based on governmental authorities at the time of invoicing are excluded from our revenue. Transaction Price Allocated to the Remaining Performance Obligations As of December 31, 2020, our aggregate amount of the transaction price allocated to the remaining performance obligations is approximately $1 billion, which is made up of fixed fee consideration and guaranteed minimums expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied). We expect to recognize approximately 90% of this amount by the end of 2023, with the remaining amount recognized by the end of 2028. We have excluded from this amount variable consideration expected to be recognized in the future related to performance obligations that are unsatisfied. The majority of our future revenue is related to our cloud and related solution customer contracts that includes variable consideration dependent upon a series of monthly volumes and/or daily usage of services and have contractual terms ending from 2021 through 2028. Disaggregation of Revenue The nature, amount, timing, and uncertainty of our revenue and how revenue and cash flows are affected by economic factors is most appropriately depicted by revenue type, geographic region, and customer vertical. Revenue by type for 2020, 2019, and 2018 was as follows (in thousands): 2020 2019 2018 Revenue: Cloud and related solutions $ 880,822 $ 896,164 $ 766,377 Software and services 63,239 52,364 58,101 Maintenance 46,472 48,282 50,581 Total revenue $ 990,533 $ 996,810 $ 875,059 We use the location of the customer as the basis of attributing revenue to geographic regions. Revenue by geographic region for 2020, 2019, and 2018, as a percentage of our total revenue, was as follows: 2020 2019 2018 Americas (principally the U.S.) 86 % 87 % 85 % Europe, Middle East and Africa (principally Europe) 10 % 9 % 10 % Asia Pacific 4 % 4 % 5 % Total revenue 100 % 100 % 100 % We generate our revenue primarily from the global communications markets; however, we serve an expanding group of customers in markets including financial services, healthcare, media and entertainment companies, and government entities. Revenue by customer vertical for 2020, 2019, and 2018, as a percentage of our total revenue, was as follows: 2020 2019 2018 Broadband/Cable/Satellite 58 % 58 % 64 % Telecommunications 19 % 19 % 21 % Other 23 % 23 % 15 % Total revenue 100 % 100 % 100 % |
Billed and Unbilled Accounts Receivable | Billed and Unbilled Accounts Receivable. Billed accounts receivable represents our unconditional rights to consideration. Once invoiced, our payment terms are generally between 30-60 days. We rarely have contracts with financing arrangements. Unbilled accounts receivable represents our rights to consideration for work completed but not billed. Unbilled accounts receivable is transferred to billed accounts receivable when the rights become unconditional which is generally at the time of invoicing. The following table rolls forward our unbilled accounts receivable from January 1, 2019 to December 31, 2020 (in thousands): Unbilled Receivables Beginning Balance, January 1, 2019 $ 37,227 Recognized during the period 252,445 Reclassified to receivables (255,983 ) Other (239 ) Ending Balance, December 31, 2019 33,450 Recognized during the period 248,574 Reclassified to receivables (244,574 ) Other 335 Ending Balance, December 31, 2020 $ 37,785 |
Deferred Revenue | Deferred Revenue. Deferred revenue represents consideration received from customers in advance of services being performed. The following table rolls forward our deferred revenue from January 1, 2019 to December 31, 2020 (in thousands): Deferred Revenue Beginning Balance, January 1, 2019 $ (57,763 ) Revenue recognized that was included in deferred revenue at the beginning of the period 39,352 Consideration received in advance of services performed net of revenue recognized in the current period (44,051 ) Other (1,184 ) Ending Balance, December 31, 2019 (63,646 ) Revenue recognized that was included in deferred revenue at the beginning of the period 40,811 Consideration received in advance of services performed net of revenue recognized in the current period (46,719 ) Other (78 ) Ending Balance, December 31, 2020 $ (69,632 ) |
Postage | Postage. We pass through to our customers the cost of postage that is incurred on behalf of those customers, and typically require an advance payment on expected postage costs. These advance payments are included in customer deposits in the accompanying Consolidated Balance Sheets (“Balance Sheets” or “Balance Sheet”) and are classified as current liabilities regardless of the contract period. We net the cost of postage against the postage reimbursements for those customers where we require advance deposits and include the net amount (which is not material) in cloud and related solutions revenue. |
Cash and Cash Equivalents | Cash and Cash Equivalents. We consider all highly liquid investments with original maturities of three months or less at the date of purchase to be cash equivalents. As of December 31, 2020 and 2019, our cash equivalents consist primarily of institutional money market funds, commercial paper, and time deposits held at major banks. As of December 31, 2020 and 2019, we had $1.7 million and $2.7 million, respectively, of restricted cash that serves to collateralize guarantees and outstanding letters of credit. This restricted cash is included in cash and cash equivalents in our Balance Sheets. |
Short-term Investments and Other Financial Instruments | Short-term Investments and Other Financial Instruments . Our financial instruments as of December 31, 2020 and 2019 include cash and cash equivalents, short-term investments, accounts receivable, accounts payable, and debt. Due to their short maturities, the carrying amounts of cash equivalents, accounts receivable, and accounts payable approximate their fair value. Our short-term investments and certain cash equivalents are considered “available-for-sale” and are reported at fair value in our Balance Sheets, with unrealized gains and losses, net of the related income tax effect, excluded from earnings and reported in a separate component of stockholders’ equity. Realized and unrealized gains and losses were not material in any period presented. Primarily all short-term investments held by us as of December 31, 2020 and 2019 have contractual maturities of less than two years from the time of acquisition. Our short-term investments at December 31, 2020 and 2019 consisted almost entirely of fixed income securities. Proceeds from the sale/maturity of short-term investments in 2020, 2019, and 2018 were $56.5 million, $52.1 million, and $190.8 million, respectively. The following table represents the fair value hierarchy based upon three levels of inputs, of which Levels 1 and 2 are considered observable and Level 3 is unobservable, for our financial assets measured at fair value (in thousands): December 31, 2020 December 31, 2019 Level 1 Level 2 Total Level 1 Level 2 Total Cash equivalents: Money market funds $ 33,535 $ — $ 33,535 $ 4,847 $ — $ 4,847 Commercial paper — 15,746 15,746 — 26,964 26,964 Corporate debt securities — 1,351 1,351 — — — Short-term investments: Corporate debt securities — 38,672 38,672 — 22,159 22,159 U.S. government agency bonds — 4,642 4,642 — — — Asset-backed securities — 8,284 8,284 — 3,950 3,950 Total $ 33,535 $ 68,695 $ 102,230 $ 4,847 $ 53,073 $ 57,920 Valuation inputs used to measure the fair values of our money market funds were derived from quoted market prices. The fair values of all other financial instruments are based upon pricing provided by third-party pricing services. These prices were derived from observable market inputs. We have chosen not to record our debt at fair value, with changes recognized in earnings each reporting period. The following table indicates the carrying value and estimated fair value of our debt as of the indicated periods (in thousands): December 31, 2020 December 31, 2019 Carrying Fair Carrying Fair Value Value Value Value 2018 Credit Agreement (carrying value including current maturities) $ 126,563 $ 126,563 $ 136,875 $ 136,875 2016 Convertible debt (par value) 230,000 244,663 230,000 262,775 The fair value for our Credit Agreement was estimated using a discounted cash flow methodology, while the fair value for our convertible debt was estimated based upon quoted market prices or recent sales activity, both of which are considered Level 2 inputs. See Note 5 for discussion regarding our debt. |
Settlement Assets and Settlement Liabilities | Settlement Assets and Settlement Liabilities. Settlement assets and settlement liabilities represent cash collected on behalf of merchants via payment processing services which is held for an established holding period until settlement with the merchant. The holding period is generally one to four business days depending on the payment model and contractual terms with the merchant. During the holding period, cash is held in trust with various major financial institutions and a corresponding liability is recorded for the amounts owed to the merchant. At any given time, there may be differences between the cash held in trust and the corresponding liability due to the timing of operating-related cash transfers. |
Concentrations of Credit Risk | Concentrations of Credit Risk. In the normal course of business, we are exposed to credit risk. The principal concentrations of credit risk relate to cash deposits, cash equivalents, short-term investments, and accounts receivable. We regularly monitor credit risk exposures and take steps to mitigate the likelihood of these exposures resulting in a loss. We hold our cash deposits, cash equivalents, and short-term investments with financial institutions we believe to be of sound financial condition. We are exposed to credit risk related to settlement assets and risk of loss related to our settlement obligations. We hold our settlement assets in major financial institutions we believe to be of sound financial condition. To mitigate the risk of loss due to non-performance or non-payment by a merchant, we perform credit risk evaluations based on multiple criteria and may require a cash deposit from the merchant depending on their risk profile. If a deposit is required, the cash is held in a segregated bank account for the duration of the relationship with the merchant. These deposits are restricted and are fully offset by corresponding liabilities and are included in other assets and other liabilities in our Balance Sheets. We generally do not require collateral or other security to support accounts receivable. We evaluate the credit worthiness of our customers in conjunction with our revenue recognition processes, as well as through our ongoing collectability assessment processes for accounts receivable. We maintain an allowance for doubtful accounts receivable based upon factors surrounding the credit risk of specific customers, historical trends, and other information. We use various judgments and estimates in determining the adequacy of the allowance for doubtful accounts receivable. See Note 3 for additional details of our concentration of accounts receivable. The activity in our allowance for doubtful accounts receivable is as follows (in thousands): 2020 2019 2018 Balance, beginning of year $ 3,735 $ 3,115 $ 4,149 Additions to expense 1,481 778 462 Write-offs (1,532 ) (158 ) (1,659 ) Recoveries — — — Other (56 ) — 163 Balance, end of year $ 3,628 $ 3,735 $ 3,115 |
Property and Equipment | Property and Equipment . Property and equipment are recorded at cost (or at estimated fair value if acquired in a business combination) and are depreciated over their estimated useful lives ranging from three to ten years. Leasehold improvements are depreciated over the shorter of their economic life or the lease term. Depreciation expense is computed using the straight-line method for financial reporting purposes. Depreciation expense for all property and equipment is reflected in our Income Statements separately in the aggregate and is not included in the cost of revenue or the other components of operating expenses.. |
Software | Software. We expend substantial amounts on R&D, particularly for new solutions and services, and enhancements of existing solutions and services. For development of software solutions that are to be licensed by us, we expense all costs related to the development of the software until technological feasibility is established. For development of software to be used internally (e.g., cloud-based systems software), we expense all costs prior to the application development stage. During 2020, 2019, and 2018, we expended $122.8 million, $128.0 million, and $124.0 million, respectively, on R&D projects. We did not capitalize any R&D costs in 2020, 2019, and 2018, as the costs subject to capitalization during these periods were not material. We did not have any capitalized R&D costs included in our December 31, 2020 and 2019 Balance Sheets. |
Realizability of Long-Lived Assets | Realizability of Long-Lived Assets. We evaluate our long-lived assets, other than goodwill, for possible impairment whenever events or changes in circumstances indicate that the carrying value of these assets may not be recoverable. A long-lived asset is impaired if estimated future undiscounted cash flows associated with that asset are insufficient to recover the carrying amount of the long-lived asset. If deemed impaired, the long-lived asset is written down to its estimated fair value. |
Goodwill | Goodwill. We evaluate our goodwill for impairment on an annual basis, as well as we may evaluate our goodwill on a more periodic basis (e.g., quarterly) if events occur or circumstances change that could indicate a potential impairment may have occurred. Goodwill is considered impaired if the carrying value of the reporting unit which includes the goodwill is greater than the estimated fair value of the reporting unit. |
Contingencies | Contingencies. We accrue for a loss contingency when: (i) it is probable that an asset has been impaired, or a liability has been incurred; and (ii) the amount of the loss can be reasonably estimated. The determination of loss contingencies is subject to various judgments and estimates. We do not record the benefit from a gain contingency until the benefit is realized. |
Earnings Per Common Share | Earnings Per Common Share (“EPS”). Basic and diluted EPS amounts are presented on the face of our Income Statements. The reconciliation of the basic and diluted EPS denominators related to the common shares is included in the following table (in thousands): 2020 2019 2018 Basic weighted-average common shares 32,010 32,051 32,488 Dilutive effect of restricted common stock 268 282 218 Dilutive effect of Stock Warrants — 132 149 Diluted weighted-average common shares 32,278 32,465 32,855 The Convertible Notes have a dilutive effect only in those periods in which our average stock price exceeds the current effective conversion price (see Note 5). The Stock Warrants have a dilutive effect only in those periods in which our average stock price exceeds the exercise price of $26.68 per warrant (under the treasury stock method) and are not subject to performance vesting conditions (see Note 12). Potentially dilutive common shares related to unvested restricted stock and Stock Warrants were excluded from the computation of diluted EPS, as the effect was antidilutive, and were not material in any period presented. |
Equity Method Investment | Equity Method Investment. During 2020, we made an additional $1.5 million investment in a payment technology and services company that enables omni-channel digital payments in Latin America. As of December 31, 2020 and 2019, we held an 15% and 8% noncontrolling interest with a carrying value of $7.9 million and $6.6 million, respectively. |
Stock-Based Compensation | Stock-Based Compensation . Stock-based compensation represents the cost related to stock-based awards granted to employees and non-employee directors. We measure stock-based compensation cost at the grant date of the award, based on the estimated fair value of the award and recognize the cost (net of estimated forfeitures) over the requisite service period. |
Income Taxes | Income Taxes. We account for income taxes using the asset and liability method. Under this method, income tax expense is recognized for the amount of taxes payable or refundable for the current year. Deferred tax assets and liabilities are recognized for expected future tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. |
Accounting Pronouncement Adopted and Accounting Pronouncement Issued But Not Yet Effective | Accounting Pronouncement Adopted. In January 2019 Leases (Topic 842) (“ASC 842”) which required lessees to recognize a lease liability and a right-of-use asset for all leases, including operating leases, with a term greater than twelve months on its balance sheet. As we adopted ASC 842 utilizing the effective date method of transition, prior period information in our Financial Statements was not adjusted. In conjunction with the adoption of ASC 842, we recorded a balance sheet gross up of approximately $80 million, related to the right-of-use assets and lease liabilities, and have included the amortization of the right-of-use-assets in the changes in other current and non-current assets and liabilities and the accretion and payments of lease liabilities in the changes in trade accounts payable and accrued liabilities, respectively, on our Statement of Cash Flows. Accounting Pronouncement Issued But Not Yet Effective. In August 2020, the FASB issued ASU No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”), which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts in an entity’s own equity. ASU 2020-06 also amends the related Earnings Per Share guidance. ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, with early adoption permitted for fiscal years beginning after December 15, 2020, and can be adopted on either a fully retrospective or modified retrospective basis. The Company is currently evaluating the timing, method of adoption and overall impact of this standard on its consolidated financial statements. |
Cloud and Related Solutions Revenue | |
Revenue Recognition | Cloud and Related Solutions Our cloud and related solutions revenue include: (i) our software-as-a-service (“SaaS”), revenue management solutions, and various related ancillary services; (ii) our managed services offering in which we operate software solutions (primarily our software solutions) on behalf of our customers; and (iii) cloud-based payment processing transaction services. We contract for our cloud-based revenue management solutions using long-term arrangements whose terms have typically ranged from three to five years. These arrangements consist of a series of multiple services delivered daily or monthly, to include such things as: (i) revenue and customer engagement solutions; (ii) business support services (e.g., workforce management tools, consumer credit verifications, etc.); (iii) digital enablement and delivery functions; and (iv) customer statement invoice printing and mailing services. The fees for these services typically are billed to our customers monthly based upon actual monthly volumes and/or usage of services (e.g., the number of customer accounts maintained on our solutions, the number of transactions processed on our solutions, and/or the quantity and content of the monthly statements and mailings processed through our solutions). For cloud-based revenue management solution contracts, the total contract consideration (including impacts of discounts or incentives) is primarily variable dependent upon actual monthly volumes and/or usage of services; however, these contracts can also include ancillary fixed consideration in the form of one-time, monthly, or annual fees. Pricing of products and services in these contracts is generally at stand-alone selling price, with no allocation of value between the individual performance obligations. In situations where we do an allocation, we determine stand-alone selling price based on established pricing and/or cost, plus an applicable margin. Revenue is generally recognized based on activities performed over a series of daily or monthly periods. We contract for managed services solutions using long-term arrangements whose terms have typically ranged from three to five years. Under managed services agreements, we operate software products (primarily our software solutions) on behalf of our customers: (i) out of a customer’s data center; (ii) out of a data center we own and operate; or (iii) out of a third-party data center we contract with for such services. Managed services can also include us providing other services, such as transitional services, fulfillment, remittance processing, operational consulting, back office, and end-user billing services. For managed services contracts, the total contract consideration is typically a fixed monthly fee, but these contracts may also have variable fee components. The fees for these services typically are billed to our customers on a monthly basis. Unless managed services are included with a software license contract (as discussed further below), there is generally only one performance obligation and revenue is recognized for these arrangements on a ratable basis as the services are performed. Our contracts for payment processing transaction services are generally month-to-month or fixed term with automatic renewals. Services provided under these arrangements primarily include Automated Clearing House (“ACH”) transaction processing, credit/debit card processing, web-based and telephone payment processing, and real-time check verification and authentication services. The fees for these services typically are billed on a monthly basis. Our payment processing services are comprised of one performance obligation. Revenue for payment processing services is based primarily on a fee per transaction or a percentage of the transaction principal and recognized as delivered over a series of daily service periods. Transaction fees collected from customers are recognized as revenue on a gross basis when we are the principal in completing the payment processing transaction. As a principal to the transaction, we control the service of processing payments on our platform. We bear primary responsibility for the fulfillment of the payment service, contract directly with our customers, and have full discretion in determining the fee charged to our customers which is independent of the costs we incur when we utilize payment processors or other financial institutions to perform services on our behalf. We therefore bear full margin risk when completing a payment processing transaction. Transaction fees paid to third-party payment processors and other financial institutions are primarily comprised of interchange and other payment-related fees paid in conjunction with the delivery of service to customers under our payment services contracts. These fees are recognized in cost of revenue. Fees related to set-up or implementation activities for both cloud-based solution and managed services contracts are deferred and recognized ratably over the related service period to which the activities relate. Depending on the significance of variable consideration, number of products/services, complex pricing structures and long-term nature of these types of contracts, the judgments and estimates made in this area could have a significant effect on the amount and timing of revenue recognized in any period. |
Software and Services Revenue | |
Revenue Recognition | Software and Services Our software and services revenue relates primarily to: (i) software license sales on either a perpetual or term license basis; and (ii) professional services to implement the software. Our software and services contracts are often contracted in bundled arrangements that include not only the software license and related implementation services, and may also include maintenance, managed services, and/or additional professional services. For our software arrangements, total contract consideration is allocated between the separate performance obligations based on stand-alone selling prices for software licenses, cost plus applicable margin for services and established pricing for maintenance. The initial sale of our software products generally requires significant production, modification, or customization, such that the delivery of the software license and related professional services required to implement the software represent one combined performance obligation that is satisfied over time based on hours worked (hours-based method). We are using hours worked on the project, compared against expected hours to complete the project, as the measure to determine progress toward completion as we believe it is the most appropriate metric to measure such progress. The software and services fees are generally fixed fees billed to our customers on a milestone or date basis. The determination of the performance obligations and allocation of value for software license arrangements require significant judgment. We generally determine stand-alone selling prices using pricing calculations (which include regional market factors) for our software license fees and maintenance, and cost-plus margins for services. Additionally, our use of an hours-based method of accounting for software license and other professional services performance obligations that are satisfied over time requires estimates of total project r evenue and costs, along with the expected hours necessary to complete a project. Changes in estimates as a result of additional information or experience on a project as work progresses are inherent characteristics of this method of revenue recognition as we are exposed to business risks in completing these types of performance obligations. The estimation process to support our hours-based recognition method is more difficult for projects of greater length and/or complexity. The judgments and estimates made for these types of obligations could: (i) have a significant effect on r evenue recognized in any period by changing the amount and/or the timing of the r evenue recognized; and/or (ii) impact the expected profitability of a project, including whether an overall loss on an arrangement has occurred. To mitigate the inherent risks in using this hours-based method, we track our current hours expended against our estimates on a periodic basis and continually reevaluate the appropriateness of our estimates. In certain instances, we sell software license volume upgrades, which provide our customers the right to use our software to process higher transaction volume levels. In these instances, we analyze the contract to determine if the volume upgrade is a separate performance obligation and if so, we recognize the value associated with the software license as revenue on the effective date of the volume upgrade. A portion of our professional services revenue is contracted separately (e.g., business consulting services, etc.). Such contracts can either be on a fixed-price or time-and-materials basis. Revenue from fixed-price professional service contracts is recognized using an estimated hours-based method, as these professional services represent a performance obligation that is satisfied over time. Revenue from professional services contracts billed on a time-and-materials basis is recognized as the services are performed. |
Maintenance Revenue | |
Revenue Recognition | Maintenance Our maintenance revenue relates primarily to support of our software once it has been implemented and placed in service. Maintenance revenue is recognized ratably over the software maintenance period as services are provided. Our maintenance consists primarily of customer and product support, technical updates (e.g., bug fixes, etc.), and unspecified upgrades or enhancements to our software products. If specified upgrades or enhancements are offered in a contract, which are rare, they are accounted for as a separate performance obligation. Maintenance may be invoiced to our customers on a monthly, quarterly, or annual basis. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Revenue Disaggregated by Revenue Type, Geographic Region and Customer | The nature, amount, timing, and uncertainty of our revenue and how revenue and cash flows are affected by economic factors is most appropriately depicted by revenue type, geographic region, and customer vertical. Revenue by type for 2020, 2019, and 2018 was as follows (in thousands): 2020 2019 2018 Revenue: Cloud and related solutions $ 880,822 $ 896,164 $ 766,377 Software and services 63,239 52,364 58,101 Maintenance 46,472 48,282 50,581 Total revenue $ 990,533 $ 996,810 $ 875,059 We use the location of the customer as the basis of attributing revenue to geographic regions. Revenue by geographic region for 2020, 2019, and 2018, as a percentage of our total revenue, was as follows: 2020 2019 2018 Americas (principally the U.S.) 86 % 87 % 85 % Europe, Middle East and Africa (principally Europe) 10 % 9 % 10 % Asia Pacific 4 % 4 % 5 % Total revenue 100 % 100 % 100 % We generate our revenue primarily from the global communications markets; however, we serve an expanding group of customers in markets including financial services, healthcare, media and entertainment companies, and government entities. Revenue by customer vertical for 2020, 2019, and 2018, as a percentage of our total revenue, was as follows: 2020 2019 2018 Broadband/Cable/Satellite 58 % 58 % 64 % Telecommunications 19 % 19 % 21 % Other 23 % 23 % 15 % Total revenue 100 % 100 % 100 % |
Rollforward of Unbilled Accounts Receivable | The following table rolls forward our unbilled accounts receivable from January 1, 2019 to December 31, 2020 (in thousands): Unbilled Receivables Beginning Balance, January 1, 2019 $ 37,227 Recognized during the period 252,445 Reclassified to receivables (255,983 ) Other (239 ) Ending Balance, December 31, 2019 33,450 Recognized during the period 248,574 Reclassified to receivables (244,574 ) Other 335 Ending Balance, December 31, 2020 $ 37,785 |
Rollforward of Deferred Revenue | The following table rolls forward our deferred revenue from January 1, 2019 to December 31, 2020 (in thousands): Deferred Revenue Beginning Balance, January 1, 2019 $ (57,763 ) Revenue recognized that was included in deferred revenue at the beginning of the period 39,352 Consideration received in advance of services performed net of revenue recognized in the current period (44,051 ) Other (1,184 ) Ending Balance, December 31, 2019 (63,646 ) Revenue recognized that was included in deferred revenue at the beginning of the period 40,811 Consideration received in advance of services performed net of revenue recognized in the current period (46,719 ) Other (78 ) Ending Balance, December 31, 2020 $ (69,632 ) |
Fair Value Measurements | The following table represents the fair value hierarchy based upon three levels of inputs, of which Levels 1 and 2 are considered observable and Level 3 is unobservable, for our financial assets measured at fair value (in thousands): December 31, 2020 December 31, 2019 Level 1 Level 2 Total Level 1 Level 2 Total Cash equivalents: Money market funds $ 33,535 $ — $ 33,535 $ 4,847 $ — $ 4,847 Commercial paper — 15,746 15,746 — 26,964 26,964 Corporate debt securities — 1,351 1,351 — — — Short-term investments: Corporate debt securities — 38,672 38,672 — 22,159 22,159 U.S. government agency bonds — 4,642 4,642 — — — Asset-backed securities — 8,284 8,284 — 3,950 3,950 Total $ 33,535 $ 68,695 $ 102,230 $ 4,847 $ 53,073 $ 57,920 |
Carrying Value and Estimated Fair Value of Debt | We have chosen not to record our debt at fair value, with changes recognized in earnings each reporting period. The following table indicates the carrying value and estimated fair value of our debt as of the indicated periods (in thousands): December 31, 2020 December 31, 2019 Carrying Fair Carrying Fair Value Value Value Value 2018 Credit Agreement (carrying value including current maturities) $ 126,563 $ 126,563 $ 136,875 $ 136,875 2016 Convertible debt (par value) 230,000 244,663 230,000 262,775 |
Allowance for Doubtful Accounts Receivable | The activity in our allowance for doubtful accounts receivable is as follows (in thousands): 2020 2019 2018 Balance, beginning of year $ 3,735 $ 3,115 $ 4,149 Additions to expense 1,481 778 462 Write-offs (1,532 ) (158 ) (1,659 ) Recoveries — — — Other (56 ) — 163 Balance, end of year $ 3,628 $ 3,735 $ 3,115 |
Reconciliation of the Basic and Diluted EPS denominators | The reconciliation of the basic and diluted EPS denominators related to the common shares is included in the following table (in thousands): 2020 2019 2018 Basic weighted-average common shares 32,010 32,051 32,488 Dilutive effect of restricted common stock 268 282 218 Dilutive effect of Stock Warrants — 132 149 Diluted weighted-average common shares 32,278 32,465 32,855 |
Segment Reporting and Signifi_2
Segment Reporting and Significant Concentration (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Summary of Revenue from Significant Customers | Revenue from these customers represented the following percentages of our total revenue for the following years: 2020 2019 2018 Comcast 22 % 23 % 25 % Charter 21 % 20 % 20 % |
Summary of Net Billed Accounts Receivable from Significant Customers | As of December 31, 2020 and 2019, the percentage of net billed accounts receivable balances attributable to these customers were as follows: As of December 31, 2020 2019 Comcast 19 % 24 % Charter 20 % 24 % |
Long-Lived Assets (Tables)
Long-Lived Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Property and Equipment | Property and Equipment. Property and equipment at December 31 consisted of the following (in thousands, except years): Useful Lives (Years) 2020 2019 Computer equipment 3-6 $ 87,289 $ 88,701 Leasehold improvements 5-10 25,442 25,778 Operating equipment 3-8 67,097 59,864 Furniture and fixtures 8 7,004 8,115 186,832 182,458 Less - accumulated depreciation (105,073 ) (98,029 ) Property and equipment, net $ 81,759 $ 84,429 |
Rollforward of Goodwill | Goodwill. We do not have any intangible assets with indefinite lives other than goodwill. A rollforward of goodwill for 2019 and 2020 is as follows (in thousands): January 1, 2019 balance $ 255,816 Adjustments related to prior acquisitions 640 Effects of changes in foreign currency exchange rates 2,708 December 31, 2019 balance 259,164 Tekzenit, Inc. acquisition 9,083 Adjustments related to prior acquisitions (60 ) Effects of changes in foreign currency exchange rates 4,135 December 31, 2020 balance $ 272,322 |
Summary of Carrying Value of Other Intangible Assets | See Note 7 for discussion of the Tekzenit, Inc. acquisition. Other Intangible Assets. Our other intangible assets subject to ongoing amortization consist of acquired customer contracts and software. Acquired Customer Contracts. As of December 31, 2020 and 2019, the carrying values of our acquired customer contracts were as follows (in thousands): December 31, 2020 December 31, 2019 Gross Gross Carrying Accumulated Net Carrying Accumulated Net Amount Amortization Amount Amount Amortization Amount Acquired customer contracts $ 153,790 $ (105,778 ) $ 48,012 $ 148,872 $ (93,767 ) $ 55,105 Software Software consists of: (i) software and similar intellectual property rights from various business combinations; and (ii) internal use software. As of December 31, 2020 and 2019, the carrying values of our software assets were as follows (in thousands): 2020 2019 Gross Gross Carrying Accumulated Net Carrying Accumulated Net Amount Amortization Amount Amount Amortization Amount Acquired software (2) $ 75,602 $ (70,242 ) $ 5,360 $ 75,370 $ (68,157 ) $ 7,213 Internal use software (3) 90,687 (69,594 ) 21,093 82,593 (57,280 ) 25,313 Total software $ 166,289 $ (139,836 ) $ 26,453 $ 157,963 $ (125,437 ) $ 32,526 |
Summary of Aggregate Amortization Related to Intangible Assets | The aggregate amortization related to customer contracts included in our operations for 2020, 2019, and 2018 was as follows (in thousands): 2020 2019 2018 Acquired customer contracts amortization (1) $ 9,963 $ 10,374 $ 7,898 (1) Acquired customer contracts represent assets acquired in our prior business acquisitions. Acquired customer contracts are amortized over their estimated useful lives ranging from three to twenty years based on the approximate pattern in which the economic benefits of the intangible assets are expected to be realized, with the amortization expense included as cost of revenue in our Income Statements. The aggregate amortization related to software included in our operations for 2020, 2019, and 2018 was as follows (in thousands): 2020 2019 2018 Acquired software amortization (2) $ 1,853 $ 2,229 $ 1,801 Internal use software amortization (3) 13,216 10,641 9,517 Total software amortization $ 15,069 $ 12,870 $ 11,318 (2) Acquired software represents software intangible assets acquired in our prior business acquisitions, which are amortized over their estimated useful lives ranging from four to eight years. The amortization of acquired software is reflected as a cost of revenue in our Income Statements. (3) Internal use software represents: (i) third-party software licenses; and (ii) the internal and external costs related to the implementation of the third-party software licenses. Internal use software is amortized over its estimated useful life ranging from one to ten years. |
Summary of Carrying Values of Customer Contract Cost Assets | Customer Contract Costs . As of December 31, 2020 and 2019, the carrying values of our customer contract cost assets, related to those contracts with a contractual term greater than one year, were as follows (in thousands): December 31, 2020 December 31, 2019 Gross Gross Carrying Accumulated Net Carrying Accumulated Net Amount Amortization Amount Amount Amortization Amount Customer contract incentives (4) $ 4,626 $ (2,320 ) $ 2,306 $ 4,626 $ (1,612 ) $ 3,014 Capitalized costs (5) 70,214 (33,104 ) 37,110 68,085 (26,482 ) 41,603 Capitalized commission fees (6) 12,291 (4,469 ) 7,822 9,561 (3,432 ) 6,129 Total customer contact costs $ 87,131 $ (39,893 ) $ 47,238 $ 82,272 $ (31,526 ) $ 50,746 |
Summary of Aggregate Amortization Related to Customer Contract Costs | The aggregate amortization related to our customer contract costs included in our operations for 2020 and 2019 was as follows (in thousands): 2020 2019 2018 Customer contract incentives amortization (4) $ 708 $ 6,018 $ 11,052 Capitalized costs amortization (5) 13,803 12,625 10,304 Capitalized commission fees amortization (6) 2,679 2,136 2,025 Total customer contract costs amortization $ 17,190 $ 20,779 $ 23,381 (4) Customer contract incentives consist principally of incentives provided to new or existing customers to convert their customer accounts to, or retain their customer’s account on, our outsourced solutions and are amortized ratably over the contract period to include renewal periods, if applicable, which as of December 31, 2020, have termination dates that range from 2023 to 2025. The amortization of customer contract incentives is reflected as a reduction of revenue in our Income Statements. (5) Capitalized costs are related to customer conversion/set-up activities and direct material costs to fulfill long-term cloud-based or managed services arrangements. These costs are amortized over the contract period, which as of December 31, 2020, range from 2021 to 2028, based on the transfer of goods or services to which the assets relate, and are included in cost of revenue in our Income Statements. (6) Capitalized commission fees are incremental commissions paid as a result of obtaining a customer contract. These fees are amortized over the contract period based on the transfer of goods or services to which the assets relate, which as of December 31, 2020, range from 2021 to 2026, and are included in selling, general and administrative (“SG&A”) expenses in our Income Statements. Incremental commission fees incurred as a result of obtaining a customer contract are expensed when incurred if the amortization period of the asset that we otherwise would have recognized is one year or less (a practical expedient allowed under ASC 606). |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | As of December 31, 2020 and 2019, our long-term debt was as follows (in thousands): December 31, December 31, 2020 2019 2018 Credit Agreement: Term loan, due March 2023 $ 126,563 $ 136,875 Less – deferred financing costs (1,155 ) (1,715 ) 2018 Term Loan, net of unamortized discounts 125,408 135,160 $200 million revolving loan facility, due March 2023 — — 2016 Convertible Notes: Convertible Notes – Senior convertible notes; due March 15, 2036; cash interest at 4.25% 230,000 230,000 Less – unamortized original issue discount (3,021 ) (6,004 ) Less – deferred financing costs (1,170 ) (2,334 ) 2016 Convertible Notes, net of unamortized discounts 225,809 221,662 Total debt, net of unamortized discounts 351,217 356,822 Current portion of long-term debt, net of unamortized discounts (14,063 ) (10,313 ) Long-term debt, net of unamortized discounts $ 337,154 $ 346,509 |
Estimated Maturities on Long-Term Debt | As of December 31, 2020 , 2021 2022 2023 Total 2018 Term Loan $ 14,062 $ 15,000 $ 97,500 $ 126,562 2016 Convertible Notes — 230,000 — 230,000 Total long-term debt repayments $ 14,062 $ 245,000 $ 97,500 $ 356,562 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Summary of Components of Lease Expense | The components of lease expense were as follows (in thousands): 2020 2019 Operating lease expense $ 26,360 $ 24,670 Variable lease expense 4,518 4,647 Short-term lease expense 625 583 Sublease income (2,066 ) (1,710 ) Total net lease expense $ 29,437 $ 28,190 |
Summary of Other Information Related to Operating Leases | Other information related to leases was as follows (in thousands, except term and discount rate): 2020 2019 Supplemental Cash Flows Information: Cash paid for amounts included in the measurement of operating lease liabilities $ 21,130 $ 24,006 Right-of-use assets obtained in exchange for new operating lease liabilities 37,987 33,782 Weighted-average remaining lease term - operating leases 69 months 59 months Weighted-average discount rate - operating leases 3.62 % 4.32 % |
Summary of Future Minimum Lease Payments Under Non-cancellable Operating Leases | Future minimum lease payments under non-cancelable leases as of December 31, 2020 were as follows (in thousands): 2021 $ 26,013 2022 25,037 2023 23,022 2024 21,827 2025 16,028 Thereafter 19,292 Total future minimum lease payments (1) 131,219 Less: Interest (2) (12,642 ) Total $ 118,577 Current operating lease liabilities $ 22,651 Non-current operating lease liabilities 95,926 Total $ 118,577 |
Restructuring and Reorganizat_2
Restructuring and Reorganization Charges (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring And Related Activities [Abstract] | |
Schedule of Activity in Business Restructuring and Reorganization Reserves | The activity in the business restructuring and reorganization reserves during 2020, 2019, and 2018 is as follows (in thousands): Disposition of Termination Facilities Business Benefits Abandonment Operations Other Total January 1, 2018, balance $ 1,116 $ 3,032 $ — $ — $ 4,148 Charged to expense during period 6,555 1,981 (2,330 ) 2,455 8,661 Cash payments (6,744 ) (2,625 ) — — (9,369 ) Adjustment for asset impairment — — — (1,851 ) (1,851 ) Other 475 546 2,330 (604 ) 2,747 December 31, 2018, balance 1,402 2,934 — — 4,336 Charged to expense during period 2,499 — — 2,335 4,834 Cash payments (3,551 ) — — (1,987 ) (5,538 ) Adjustment for asset impairment — — — (438 ) (438 ) Adjustment for adoption of ASC 842 (1) — (2,934 ) — — (2,934 ) Other 472 — — 90 562 December 31, 2019, balance 822 — — — 822 Charged to expense during period 4,152 — — 1,176 5,328 Cash payments (4,042 ) — — (504 ) (4,546 ) Adjustment for asset impairment — — — (672 ) (672 ) Other 1 — — — 1 December 31, 2020, balance $ 933 $ — $ — $ — $ 933 (1) With the adoption of ASC 842 on January 1, 2019, the facilities abandonment liabilities of $2.9 million were offset against our initial lease right-of-use assets on our Balance Sheet. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Components of Net Income from Continuing Operations Before Income Taxes | Income Tax Provision. The components of net income before income taxes are as follows (in thousands): 2020 2019 2018 Domestic $ 77,721 $ 93,510 $ 80,234 India 6,245 4,769 2,173 Foreign Other 1,390 7,444 4,580 Total $ 85,356 $ 105,723 $ 86,987 |
Schedule of Components of Income Tax Expense (Benefit) | The income tax provision consists of the following (in thousands): 2020 2019 2018 Current: Federal $ 17,760 $ 16,616 $ 7,814 State 5,373 2,910 4,589 India 1,788 1,004 757 Foreign Other 2,990 2,515 2,784 27,911 23,045 15,944 Deferred: Federal (497 ) (1,943 ) 4,584 State (1,031 ) 624 (619 ) India (387 ) 36 (152 ) Foreign Other 649 1,191 1,100 (1,266 ) (92 ) 4,913 Total income tax provision $ 26,645 $ 22,953 $ 20,857 |
Schedule of Effective Income Tax Rate Reconciliation | The difference between our income tax provision computed at the statutory Federal income tax rate and our financial statement income tax is summarized as follows (in thousands): 2020 2019 2018 Provision at Federal rate of 21% $ 17,925 $ 22,202 $ 18,267 State income taxes, net of Federal impact 3,430 2,792 2,985 Research and experimentation credits (2,705 ) (3,314 ) (4,040 ) Stock award vesting (540 ) (3,661 ) (1,513 ) Tax uncertainties (403 ) (56 ) (122 ) Section 199 manufacturing deduction — — 168 Section 162(m) compensation limitation 4,494 978 951 Foreign rate differential 462 930 1,238 Valuation allowance for deferred tax assets 1,002 (495 ) (177 ) Withholding Tax 2,572 2,408 2,070 Other impact of foreign operations 621 227 685 Statutory rate change 71 (10 ) (87 ) Other (284 ) 952 432 Total income tax provision $ 26,645 $ 22,953 $ 20,857 |
Net Deferred Income Tax Assets | Deferred Income Taxes. Net deferred income tax assets as of December 31, 2020 and 2019 are as follows (in thousands): 2020 2019 Deferred income tax assets $ 59,895 $ 71,343 Deferred income tax liabilities (33,099 ) (48,411 ) Valuation allowance (21,700 ) (19,916 ) Net deferred income tax assets $ 5,096 $ 3,016 |
The Components of Net Deferred Income Tax Assets (Liabilities) | The components of our net deferred income tax assets (liabilities) as of December 31, 2020 and 2019 are as follows (in thousands): 2020 2019 Net deferred income tax assets: Accrued expenses and reserves $ 12,587 $ 8,810 Stock-based compensation 3,285 4,844 Software (1,532 ) (1,556 ) Client contracts and related intangibles (5,199 ) (7,771 ) Goodwill (9,109 ) (7,431 ) Net operating loss carryforwards 26,893 25,989 Property and equipment (8,816 ) (4,410 ) Deferred revenue 4,020 1,307 State Taxes 1,804 1,387 Contingent payments (1,017 ) (1,710 ) Foreign exchange gain/loss 1,406 1,340 Operating lease right-of-use assets and lease liabilities 1,962 1,611 Other 512 522 Total deferred income tax assets 26,796 22,932 Less: valuation allowance (21,700 ) $ (19,916 ) Net deferred income tax assets $ 5,096 $ 3,016 |
Reconciliation of Beginning and Ending Balances of Liability for Unrecognized Tax Benefits | A reconciliation of the beginning and ending balances of our liability for unrecognized tax benefits is as follows (in thousands): 2020 2019 2018 Balance, beginning of year $ 1,540 $ 1,668 $ 1,915 Purchase accounting adjustment related to acquisitions 160 — — Lapse of statute of limitations (313 ) (420 ) (226 ) Additions for tax positions of prior years 111 322 85 Reductions for tax positions of prior years (105 ) (30 ) (106 ) Balance, end of year $ 1,393 $ 1,540 $ 1,668 |
Equity Compensation Plans (Tabl
Equity Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Unvested Restricted Common Stock Activity | A summary of our unvested restricted stock activity during 2020 is as follows (shares in thousands): 2020 Shares Weighted- Average Grant Date Fair Value Unvested awards, beginning 1,117 $ 42.60 Awards granted 695 40.86 Awards forfeited/cancelled (64 ) 40.53 Awards vested (707 ) 43.15 Unvested awards, ending 1,041 $ 41.31 |
Unaudited Quarterly Financial_2
Unaudited Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | Quarter Ended March 31 June 30 September 30 December 31 (in thousands, except per share amounts) 2020: Total revenue (1) $ 245,617 $ 240,321 $ 244,108 $ 260,487 Total cost of revenue (exclusive of depreciation) 131,206 138,153 131,073 135,165 Operating income (1)(2)(3)(4) 33,159 19,775 28,947 23,675 Income before income taxes (1)(2)(3)(4) 28,676 14,250 22,742 19,688 Income tax provision (5) (7,162 ) (3,884 ) (9,176 ) (6,423 ) Net income (1)(2)(3)(4)(5) 21,514 10,366 13,566 13,265 Basic earnings per common share (1)(2)(3)(4)(5) $ 0.67 $ 0.32 $ 0.42 $ 0.42 Diluted earnings per common share (1)(2)(3)(4)(5) 0.66 0.32 0.42 0.41 2019: Total revenue $ 244,793 $ 245,856 $ 251,414 $ 254,747 Total cost of revenue (exclusive of depreciation) 128,963 132,234 132,054 131,871 Operating income (2) 32,093 30,338 33,420 30,258 Income before income taxes (2) 25,851 26,837 28,821 24,214 Income tax provision (5) (6,600 ) (7,458 ) (7,262 ) (1,633 ) Net income (2)(5) 19,251 19,379 21,559 22,581 Basic earnings per common share (2)(5) $ 0.60 $ 0.60 $ 0.67 $ 0.71 Diluted earnings per common share (2)(5) 0.59 0.60 0.66 0.70 ( 1 ) During the second quarter of 2020, we began to experience extended sales and implementation cycles and processing volume reductions resulting from the economic slowdown caused by the COVID-19 pandemic. However, we had sequential quarterly growth in both the third and fourth quarters of 2020 reflecting a stabilization of these sales and implementation cycles and a rebound in processing volumes. ( 2 ) During the first, second, third, and fourth quarters of 2020 we incurred restructuring and reorganization charges of $1.0 million, $2.5 million, $0.8 million, and $1.0 million, respectively, or $0.02, $0.06, $0.02, and $0.02 per diluted share. During the second, third, and fourth quarters of 2019 we incurred restructuring and reorganization charges of $1.8 million, $1.3 million, and $1.6 million, respectively, or $0.04, $0.03, and $0.04 per diluted share. See Note 8 for further discussion of our restructuring and reorganization activities. ( 3 ) During the second quarter of 2020 we wrote-off approximately $10 million of deferred contract costs resulting from the discontinuance of a project implementation (see Note 4). ( 4 ) During the third and fourth quarters of 2020, we incurred executive transition costs of $1.8 and $11.2 million, respectively, or $0.03 and $0.23 per diluted share, related to the planned departure of our then-current CEO under terms of his separation agreement. These costs relate to compensation, benefits, and other payments pursuant to the terms of his employment agreement and accelerated vesting of unvested restricted stock awards that were recognized over his remaining service term (see Note 13). ( 5 ) Fluctuations in our effective income tax rate between quarters generally relates to the accounting for discrete income tax items in any given quarter, and revisions of estimates for certain income tax components during the year. For 2020: Our effective income tax rates for the first, second, third, and fourth quarters were 25%, 27%, 40%, and 33%, respectively. The third and fourth quarter effective income tax rates were primarily impacted negatively by the disallowance of compensation relating to the executive transition costs. For 2019: Our effective income tax rates for the first, second, third, and fourth quarters were 26%, 28%, 25%, and 7%, respectively. The fourth quarter effective income tax rate was positively impacted by an approximately $4 million net income tax benefit we received as a result of Comcast’s exercise of their remaining 0.4 million of vested common stock warrants (see Note 12). |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2019 | Jan. 01, 2018 | Dec. 31, 2014 | |
Summary Of Significant Accounting Policies [Line Items] | ||||||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | true | ||||
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Jan. 31, 2019 | Jan. 1, 2018 | ||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201602Member | us-gaap:AccountingStandardsUpdate201409Member | ||||
Retained earnings | $ 876,402 | $ 848,623 | ||||
Aggregate amount of transaction price allocated to remaining performance obligations | $ 1,000,000 | |||||
Remaining performance obligations expected to be recognized, year | 2028 | |||||
Restricted cash | $ 1,700 | 2,700 | ||||
Proceeds from sale/maturity of short-term investments | 56,454 | 52,135 | $ 190,778 | |||
Research and development | 122,847 | 127,994 | $ 124,034 | |||
Common stock warrants issued, per warrant | $ 26.68 | |||||
Equity method investments, additional investment | 1,500 | |||||
Equity method investment, carrying value | 7,900 | 6,600 | ||||
Operating lease right-of-use assets | 110,756 | $ 94,847 | ||||
Lease liabilities | $ 118,577 | |||||
Payment Technology and Services Company | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Equity method investment, noncontrolling interest | 15.00% | 8.00% | ||||
Common stock Warrants | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Common stock warrants issued, per warrant | $ 26.68 | |||||
Minimum | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Billed accounts receivable, payment term | 30 days | |||||
Property and equipment, useful lives | 3 years | |||||
Maximum | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Billed accounts receivable, payment term | 60 days | |||||
Short-term investment contractual maturities | 2 years | 2 years | ||||
Property and equipment, useful lives | 10 years | |||||
Cloud and Related Solutions Revenue | Minimum | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Long-term arrangements service period | 3 years | |||||
Future revenue including variable consideration, contractual terms ending, year | 2021 | |||||
Cloud and Related Solutions Revenue | Maximum | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Long-term arrangements service period | 5 years | |||||
Future revenue including variable consideration, contractual terms ending, year | 2028 | |||||
Managed Services Solutions | Minimum | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Long-term arrangements service period | 3 years | |||||
Managed Services Solutions | Maximum | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Long-term arrangements service period | 5 years | |||||
ASC 606 | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Retained earnings | $ 7,000 | |||||
ASU 2016-02 | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Operating lease right-of-use assets | $ 80,000 | |||||
Lease liabilities | $ 80,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details Textual 1) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-01-01 | Dec. 31, 2020 |
Summary Of Significant Accounting Policies [Line Items] | |
Remaining performance obligations expected to be recognized, percentage | 90.00% |
Remaining performance obligations expected to be recognized, period | 3 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Revenue Disaggregated by Revenue Type, Geographic Region and Customer (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue: | |||
Total revenue | $ 990,533 | $ 996,810 | $ 875,059 |
Percentage of total revenue | 100.00% | 100.00% | 100.00% |
Broadband/Cable/Satellite | |||
Revenue: | |||
Percentage of total revenue | 58.00% | 58.00% | 64.00% |
Telecommunications | |||
Revenue: | |||
Percentage of total revenue | 19.00% | 19.00% | 21.00% |
Other | |||
Revenue: | |||
Percentage of total revenue | 23.00% | 23.00% | 15.00% |
Americas | |||
Revenue: | |||
Percentage of total revenue | 86.00% | 87.00% | 85.00% |
Europe, Middle East and Africa | |||
Revenue: | |||
Percentage of total revenue | 10.00% | 9.00% | 10.00% |
Asia Pacific | |||
Revenue: | |||
Percentage of total revenue | 4.00% | 4.00% | 5.00% |
Cloud and Related Solutions | |||
Revenue: | |||
Total revenue | $ 880,822 | $ 896,164 | $ 766,377 |
Software and Services | |||
Revenue: | |||
Total revenue | 63,239 | 52,364 | 58,101 |
Maintenance | |||
Revenue: | |||
Total revenue | $ 46,472 | $ 48,282 | $ 50,581 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Rollforward of Unbilled Accounts Receivable (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | ||
Beginning Balance | $ 33,450 | $ 37,227 |
Recognized during the period | 248,574 | 252,445 |
Reclassified to receivables | (244,574) | (255,983) |
Other | 335 | (239) |
Ending Balance | $ 37,785 | $ 33,450 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Rollforward of Deferred Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | ||
Beginning Balance | $ (63,646) | $ (57,763) |
Revenue recognized that was included in deferred revenue at the beginning of the period | 40,811 | 39,352 |
Consideration received in advance of services performed net of revenue recognized in the current period | (46,719) | (44,051) |
Other | (78) | (1,184) |
Ending Balance | $ (69,632) | $ (63,646) |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Fair Value Measurements (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Assets: | ||
Assets fair value | $ 102,230 | $ 57,920 |
Cash equivalents | Money Market Funds | ||
Assets: | ||
Assets fair value | 33,535 | 4,847 |
Cash equivalents | Commercial Paper | ||
Assets: | ||
Assets fair value | 15,746 | 26,964 |
Cash equivalents | Corporate Debt Securities | ||
Assets: | ||
Assets fair value | 1,351 | |
Short-term Investments | Corporate Debt Securities | ||
Assets: | ||
Assets fair value | 38,672 | 22,159 |
Short-term Investments | U.S. Government Agency Bonds | ||
Assets: | ||
Assets fair value | 4,642 | |
Short-term Investments | Asset-backed securities | ||
Assets: | ||
Assets fair value | 8,284 | 3,950 |
Level 1 | ||
Assets: | ||
Assets fair value | 33,535 | 4,847 |
Level 1 | Cash equivalents | Money Market Funds | ||
Assets: | ||
Assets fair value | 33,535 | 4,847 |
Level 2 | ||
Assets: | ||
Assets fair value | 68,695 | 53,073 |
Level 2 | Cash equivalents | Commercial Paper | ||
Assets: | ||
Assets fair value | 15,746 | 26,964 |
Level 2 | Cash equivalents | Corporate Debt Securities | ||
Assets: | ||
Assets fair value | 1,351 | |
Level 2 | Short-term Investments | Corporate Debt Securities | ||
Assets: | ||
Assets fair value | 38,672 | 22,159 |
Level 2 | Short-term Investments | U.S. Government Agency Bonds | ||
Assets: | ||
Assets fair value | 4,642 | |
Level 2 | Short-term Investments | Asset-backed securities | ||
Assets: | ||
Assets fair value | $ 8,284 | $ 3,950 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Carrying Value and Estimated Fair Value of Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Carrying value and estimated fair value of debt | ||
Carrying Value | $ 356,562 | |
2018 Credit Agreement | 2018 Term Loan | ||
Carrying value and estimated fair value of debt | ||
Fair Value | 126,563 | $ 136,875 |
Carrying Value | 126,563 | 136,875 |
Senior Convertible Notes 2016 | ||
Carrying value and estimated fair value of debt | ||
Fair Value | 244,663 | 262,775 |
Carrying Value | $ 230,000 | $ 230,000 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Allowance for Doubtful Accounts Receivable (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Allowance for Doubtful Accounts Receivable | |||
Balance, beginning of year | $ 3,735 | $ 3,115 | $ 4,149 |
Additions to expense | 1,481 | 778 | 462 |
Write-offs | (1,532) | (158) | (1,659) |
Other | (56) | 163 | |
Balance, end of year | $ 3,628 | $ 3,735 | $ 3,115 |
Summary of Significant Accou_12
Summary of Significant Accounting Policies - Reconciliation of the Basic and Diluted EPS Denominators (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of the basic and diluted EPS denominators | |||
Basic weighted-average common shares | 32,010 | 32,051 | 32,488 |
Dilutive effect of restricted common stock | 268 | 282 | 218 |
Dilutive effect of Stock Warrants | 132 | 149 | |
Diluted weighted-average common shares | 32,278 | 32,465 | 32,855 |
Segment Reporting and Signifi_3
Segment Reporting and Significant Concentration (Details Textual) | 12 Months Ended |
Dec. 31, 2020SegmentClient | |
Segment Reporting [Abstract] | |
Number of reportable segments | Segment | 1 |
Number of significant clients | Client | 2 |
Segment Reporting and Signifi_4
Segment Reporting and Significant Concentration - Summary of Revenue from Significant Customers (Details) - Customer Concentration Risk - Sales Revenue, Net | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Comcast | |||
Segment Reporting Information [Line Items] | |||
Revenue by Major Client, Percentage | 22.00% | 23.00% | 25.00% |
Charter | |||
Segment Reporting Information [Line Items] | |||
Revenue by Major Client, Percentage | 21.00% | 20.00% | 20.00% |
Segment Reporting and Signifi_5
Segment Reporting and Significant Concentration - Summary of Net Billed Accounts Receivable from Significant Customers (Details) - Accounts Receivable - Customer Concentration Risk | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Comcast | ||
Trade accounts receivable: | ||
Accounts Receivable by Significant Client, Percentage | 19.00% | 24.00% |
Charter | ||
Trade accounts receivable: | ||
Accounts Receivable by Significant Client, Percentage | 20.00% | 24.00% |
Long-Lived Assets - Summary of
Long-Lived Assets - Summary of Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 186,832 | $ 182,458 |
Less - accumulated depreciation | (105,073) | (98,029) |
Property and equipment, net | $ 81,759 | 84,429 |
Minimum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, useful lives | 3 years | |
Maximum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, useful lives | 10 years | |
Computer equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 87,289 | 88,701 |
Computer equipment | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, useful lives | 3 years | |
Computer equipment | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, useful lives | 6 years | |
Leasehold improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 25,442 | 25,778 |
Leasehold improvements | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, useful lives | 5 years | |
Leasehold improvements | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, useful lives | 10 years | |
Operating equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 67,097 | 59,864 |
Operating equipment | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, useful lives | 3 years | |
Operating equipment | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, useful lives | 8 years | |
Furniture and fixtures | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, useful lives | 8 years | |
Property and equipment, gross | $ 7,004 | $ 8,115 |
Long-Lived Assets - Rollforward
Long-Lived Assets - Rollforward of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill RollForward | ||
Beginning balance | $ 259,164 | $ 255,816 |
Tekzenit, Inc. acquisition | 9,083 | |
Adjustments related to prior acquisitions | (60) | 640 |
Effects of changes in foreign currency exchange rates | 4,135 | 2,708 |
Ending balance | $ 272,322 | $ 259,164 |
Long-Lived Assets - Summary o_2
Long-Lived Assets - Summary of Carrying Value of Acquired Customer Contracts (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 166,289 | $ 157,963 |
Accumulated Amortization | (139,836) | (125,437) |
Net Amount | 26,453 | 32,526 |
Acquired customer contracts | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 153,790 | 148,872 |
Accumulated Amortization | (105,778) | (93,767) |
Net Amount | $ 48,012 | $ 55,105 |
Long-Lived Assets - Summary o_3
Long-Lived Assets - Summary of Aggregate Amortization Related to Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Acquired customer contracts | |||
Finite Lived Intangible Assets [Line Items] | |||
Total amortization expense | $ 9,963 | $ 10,374 | $ 7,898 |
Acquired software | |||
Finite Lived Intangible Assets [Line Items] | |||
Total amortization expense | 1,853 | 2,229 | 1,801 |
Internal use software | |||
Finite Lived Intangible Assets [Line Items] | |||
Total amortization expense | 13,216 | 10,641 | 9,517 |
Software | |||
Finite Lived Intangible Assets [Line Items] | |||
Total amortization expense | $ 15,069 | $ 12,870 | $ 11,318 |
Long-Lived Assets - Summary o_4
Long-Lived Assets - Summary of Aggregate Amortization Related to Intangible Assets (Parenthetical) (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2018 | |
Acquired customer contracts | ||
Finite Lived Intangible Assets [Line Items] | ||
Estimated useful life | 100 months | |
Acquired customer contracts | Minimum | ||
Finite Lived Intangible Assets [Line Items] | ||
Estimated useful life | 3 years | |
Acquired customer contracts | Maximum | ||
Finite Lived Intangible Assets [Line Items] | ||
Estimated useful life | 20 years | |
Acquired software | Minimum | ||
Finite Lived Intangible Assets [Line Items] | ||
Estimated useful life | 4 years | |
Acquired software | Maximum | ||
Finite Lived Intangible Assets [Line Items] | ||
Estimated useful life | 8 years | |
Internal use software | Minimum | ||
Finite Lived Intangible Assets [Line Items] | ||
Estimated useful life | 1 year | |
Internal use software | Maximum | ||
Finite Lived Intangible Assets [Line Items] | ||
Estimated useful life | 10 years |
Long-Lived Assets (Details Text
Long-Lived Assets (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Finite Lived Intangible Assets [Line Items] | ||||
Impairment charge for write-off of capitalized customer contract costs | $ 10 | |||
Acquired customer contracts | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Remaining weighted-average amortization period | 100 months | |||
Estimated total amortization expense 2021 | $ 7.2 | |||
Estimated total amortization expense 2022 | 7 | |||
Estimated total amortization expense 2023 | 5.8 | |||
Estimated total amortization expense 2024 | 5.6 | |||
Estimated total amortization expense 2025 | 5.6 | |||
Software | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Remaining weighted-average amortization period | 36 months | |||
Estimated total amortization expense 2021 | 11.7 | |||
Estimated total amortization expense 2022 | 7.2 | |||
Estimated total amortization expense 2023 | 4.6 | |||
Estimated total amortization expense 2024 | 1.5 | |||
Estimated total amortization expense 2025 | 0.9 | |||
Customer contract costs | Cost of revenue | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Impairment charge for write-off of capitalized customer contract costs | $ 10.3 |
Long-Lived Assets - Summary o_5
Long-Lived Assets - Summary of Carrying Value of Software Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 166,289 | $ 157,963 |
Accumulated Amortization | (139,836) | (125,437) |
Net Amount | 26,453 | 32,526 |
Acquired software | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 75,602 | 75,370 |
Accumulated Amortization | (70,242) | (68,157) |
Net Amount | 5,360 | 7,213 |
Internal use software | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 90,687 | 82,593 |
Accumulated Amortization | (69,594) | (57,280) |
Net Amount | $ 21,093 | $ 25,313 |
Long-Lived Assets - Summary o_6
Long-Lived Assets - Summary of Carrying Values of Customer Contract Cost Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Capitalized Contract Cost [Line Items] | ||
Gross Carrying Amount | $ 87,131 | $ 82,272 |
Accumulated Amortization | (39,893) | (31,526) |
Net Amount | 47,238 | 50,746 |
Customer contract incentives | ||
Capitalized Contract Cost [Line Items] | ||
Gross Carrying Amount | 4,626 | 4,626 |
Accumulated Amortization | (2,320) | (1,612) |
Net Amount | 2,306 | 3,014 |
Capitalized costs | ||
Capitalized Contract Cost [Line Items] | ||
Gross Carrying Amount | 70,214 | 68,085 |
Accumulated Amortization | (33,104) | (26,482) |
Net Amount | 37,110 | 41,603 |
Capitalized commission fees | ||
Capitalized Contract Cost [Line Items] | ||
Gross Carrying Amount | 12,291 | 9,561 |
Accumulated Amortization | (4,469) | (3,432) |
Net Amount | $ 7,822 | $ 6,129 |
Long-Lived Assets - Summary o_7
Long-Lived Assets - Summary of Aggregate Amortization Related to Customer Contract Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Capitalized Contract Cost [Line Items] | |||
Total customer contract costs amortization | $ 17,190 | $ 20,779 | $ 23,381 |
Customer contract incentives | |||
Capitalized Contract Cost [Line Items] | |||
Total customer contract costs amortization | 708 | 6,018 | 11,052 |
Capitalized costs | |||
Capitalized Contract Cost [Line Items] | |||
Total customer contract costs amortization | 13,803 | 12,625 | 10,304 |
Capitalized commission fees | |||
Capitalized Contract Cost [Line Items] | |||
Total customer contract costs amortization | $ 2,679 | $ 2,136 | $ 2,025 |
Long-Lived Assets - Summary o_8
Long-Lived Assets - Summary of Aggregate Amortization Related to Customer Contract Costs (Parenthetical) (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Minimum | Customer contract incentives | |
Finite Lived Intangible Assets [Line Items] | |
Intangible assets, amortization year | 2023 |
Minimum | Capitalized costs | |
Finite Lived Intangible Assets [Line Items] | |
Intangible assets, amortization year | 2021 |
Minimum | Capitalized commission fees | |
Finite Lived Intangible Assets [Line Items] | |
Intangible assets, amortization year | 2021 |
Maximum | Customer contract incentives | |
Finite Lived Intangible Assets [Line Items] | |
Intangible assets, amortization year | 2025 |
Maximum | Capitalized costs | |
Finite Lived Intangible Assets [Line Items] | |
Intangible assets, amortization year | 2028 |
Maximum | Capitalized commission fees | |
Finite Lived Intangible Assets [Line Items] | |
Intangible assets, amortization year | 2026 |
Policy election to expense fees as incurred | 1 year |
Debt - Long-Term Debt (Details)
Debt - Long-Term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 05, 2018 |
Debt Instrument [Line Items] | |||
Total long-term debt, gross | $ 356,562 | ||
Less – unamortized original issue discount | (5,346) | $ (10,053) | |
Less – deferred financing costs | $ (2,800) | ||
Total debt, net of unamortized discounts | 351,217 | 356,822 | |
Current portion of long-term debt, net of unamortized discounts | (14,063) | (10,313) | |
Long-term debt, net of unamortized discounts | 337,154 | 346,509 | |
2018 Credit Agreement | |||
Debt Instrument [Line Items] | |||
Less – deferred financing costs | (1,200) | ||
2018 Credit Agreement | 2018 Term Loan | |||
Debt Instrument [Line Items] | |||
Total long-term debt, gross | 126,563 | 136,875 | |
Less – deferred financing costs | (1,155) | (1,715) | |
Total debt, net of unamortized discounts | 125,408 | 135,160 | $ 150,000 |
Senior Convertible Notes 2016 | |||
Debt Instrument [Line Items] | |||
Total long-term debt, gross | 230,000 | 230,000 | |
Less – unamortized original issue discount | (3,021) | (6,004) | |
Less – deferred financing costs | (1,170) | (2,334) | |
Total debt, net of unamortized discounts | $ 225,809 | $ 221,662 |
Debt - Long-Term Debt (Parenthe
Debt - Long-Term Debt (Parenthetical) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Mar. 05, 2018 | Mar. 31, 2016 | |
2018 Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Amount available under credit facility | $ 350,000,000 | |||
2018 Credit Agreement | 2018 Term Loan | ||||
Debt Instrument [Line Items] | ||||
Basis spread on term loan | 1.50% | |||
Term loan combined interest rate | 1.75% | 3.44% | ||
Maturity period | Mar. 31, 2023 | |||
2018 Credit Agreement | Revolving Loan | ||||
Debt Instrument [Line Items] | ||||
Maturity period | Mar. 31, 2023 | |||
Amount available under credit facility | $ 200,000,000 | $ 200,000,000 | ||
Senior Convertible Notes 2016 | ||||
Debt Instrument [Line Items] | ||||
Maturity period | Mar. 15, 2036 | |||
Interest rate on senior subordinated convertible notes | 4.25% | 4.25% |
Debt - Credit Agreement (Detail
Debt - Credit Agreement (Details Textual) - USD ($) | Mar. 05, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Feb. 28, 2015 |
Debt Instrument [Line Items] | |||||
Carrying value of debt | $ 351,217,000 | $ 356,822,000 | |||
Proceeds from long term debt | $ 150,000,000 | ||||
Principal repayments | $ 10,313,000 | 7,500,000 | 125,625,000 | ||
Net increase of available cash | $ 30,000,000 | ||||
Payments of deferred financing costs | 1,490,000 | ||||
Financing costs | 2,800,000 | ||||
Loss on extinguishment of debt | $ (810,000) | ||||
2015 Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Principal repayments | 120,000,000 | ||||
2018 Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Credit Agreement | $ 350,000,000 | ||||
Debt instrument, frequency of periodic payment | payable quarterly | ||||
Debt instrument, payment terms of principal of debt | The 2018 Credit Agreement includes mandatory repayments of the aggregate principal amount of the 2018 Term Loan (payable quarterly) for the first, second, third, fourth, and fifth years, with the remaining principal balance due at maturity. The 2018 Credit Agreement has no prepayment penalties and requires mandatory repayments under certain circumstances, including: (i) asset sales or casualty proceeds; and (ii) proceeds of debt or preferred stock issuances. | ||||
Payments of deferred financing costs | $ 1,500,000 | ||||
Financing costs | 1,200,000 | ||||
2018 Credit Agreement | Minimum | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, unused capacity, commitment fee percentage | 0.20% | ||||
2018 Credit Agreement | Maximum | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, unused capacity, commitment fee percentage | 0.375% | ||||
2018 Credit Agreement | London Interbank Offered Rate (LIBOR) | Minimum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on term loan | 1.50% | ||||
2018 Credit Agreement | London Interbank Offered Rate (LIBOR) | Maximum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on term loan | 2.50% | ||||
2018 Credit Agreement | Base Rate | Minimum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on term loan | 0.50% | ||||
2018 Credit Agreement | Base Rate | Maximum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on term loan | 1.50% | ||||
2018 Credit Agreement | Revolving Loan | |||||
Debt Instrument [Line Items] | |||||
Credit Agreement | $ 200,000,000 | $ 200,000,000 | |||
Credit facility term | 5 years | ||||
Line of credit facility, unused capacity, commitment fee percentage | 0.20% | ||||
Credit facility, outstanding borrowings | $ 0 | ||||
Credit facility, current borrowing capacity | 200,000,000 | ||||
2018 Credit Agreement | 2018 Term Loan | |||||
Debt Instrument [Line Items] | |||||
Carrying value of debt | 150,000,000 | $ 125,408,000 | $ 135,160,000 | ||
Term loan period | 5 years | ||||
Proceeds from long term debt | $ 150,000,000 | ||||
Principal repayments | $ 10,300,000 | ||||
Basis spread on term loan | 1.50% | ||||
Term loan combined interest rate | 1.75% | 3.44% | |||
Financing costs | $ 1,155,000 | $ 1,715,000 | |||
2015 Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Credit Agreement | $ 350,000,000 | ||||
2015 Credit Agreement | Revolving Loan | |||||
Debt Instrument [Line Items] | |||||
Unamortized debt issuance costs | 800,000 | ||||
Loss on extinguishment of debt | $ 800,000 |
Debt - 2016 Convertible Notes (
Debt - 2016 Convertible Notes (Details Textual) - Senior Convertible Notes 2016 $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($)Tradingday$ / shares | Mar. 31, 2016USD ($) | |
Debt Instrument [Line Items] | ||
Senior convertible notes face amount | $ | $ 230,000 | |
Interest rate on senior convertible notes | 4.25% | 4.25% |
Maturity date of 2016 convertible Notes | Mar. 15, 2036 | |
Initial conversion rate of common stock | 17.6656 | |
Convertible Notes, initial conversion of Par Value Convertible Notes to common stock | $ | $ 1 | |
Initial conversion price | $ / shares | $ 56.61 | |
Minimum quarterly dividends to adjust conversion rate | $ / shares | $ 0.185 | |
Percentage of par value of convertible notes to be settled in cash | 100.00% | |
Consecutive trading days during related observation period | 40 days | |
Rate of conversion price | 130.00% | |
Debt instrument, convertible, threshold consecutive trading days | Tradingday | 30 | |
Debt instrument, convertible, threshold trading days | Tradingday | 20 |
Debt - Estimated Maturities on
Debt - Estimated Maturities on Long-Term Debt (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Maturities on Long-Term Debt | |
2021 | $ 14,062 |
2022 | 245,000 |
2023 | 97,500 |
Total | 356,562 |
Senior Convertible Notes 2016 | |
Maturities on Long-Term Debt | |
2022 | 230,000 |
Total | 230,000 |
Term Loan | 2018 Credit Agreement | |
Maturities on Long-Term Debt | |
2021 | 14,062 |
2022 | 15,000 |
2023 | 97,500 |
Total | $ 126,562 |
Debt - Deferred Financing Costs
Debt - Deferred Financing Costs (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 05, 2018 | |
Debt Instrument [Line Items] | ||||
Deferred financing costs related to convertible notes | $ 2,800 | |||
Amortization expenses of deferred financing costs included in Interest expense | $ 1,900 | $ 1,800 | $ 1,900 | |
2018 Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Deferred financing costs related to convertible notes | 1,200 | |||
Senior Convertible Notes 2016 | ||||
Debt Instrument [Line Items] | ||||
Deferred financing costs related to convertible notes | $ 1,170 | $ 2,334 | ||
Credit Agreement and Convertible Notes | Debt Offerings | ||||
Debt Instrument [Line Items] | ||||
Weighted-average interest rate on debt borrowings | 5.00% | 6.00% | 5.00% |
Leases (Details Textual)
Leases (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Lessee Lease Description [Line Items] | |||
Operating leases, options to extend | some of which include options to extend the leases for up to an additional ten years. | ||
Operating leases, existence of option to extend | true | ||
Operating sublease, option to extend | certain subleases have renewal terms that can extend the lease for up to an additional two years. | ||
Operating sublease, existence of option to extend | true | ||
Total lease expenses | $ 29,437 | $ 28,190 | $ 19,000 |
Maximum | |||
Lessee Lease Description [Line Items] | |||
Operating leases, remaining lease term | 10 years | ||
Operating leases, option to extend leases term | 10 years | ||
Operating subleases, remaining sublease term | 3 years | ||
Operating subleases, option to extend sublease term | 2 years |
Leases - Summary of Components
Leases - Summary of Components of Lease Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Leases [Abstract] | |||
Operating lease expense | $ 26,360 | $ 24,670 | |
Variable lease expense | 4,518 | 4,647 | |
Short-term lease expense | 625 | 583 | |
Sublease income | (2,066) | (1,710) | |
Total net lease expense | $ 29,437 | $ 28,190 | $ 19,000 |
Leases - Summary of Other Infor
Leases - Summary of Other Information Related to Operating Leases (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 21,130 | $ 24,006 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 37,987 | $ 33,782 |
Weighted-average remaining lease term - operating leases | 69 months | 59 months |
Weighted-average discount rate - operating leases | 3.62% | 4.32% |
Leases - Summary of Future Mini
Leases - Summary of Future Minimum Lease Payments Under Non-cancellable Operating Leases (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
2021 | $ 26,013 | ||
2022 | 25,037 | ||
2023 | 23,022 | ||
2024 | 21,827 | ||
2025 | 16,028 | ||
Thereafter | 19,292 | ||
Total future minimum lease payments | [1] | 131,219 | |
Less: Interest | [2] | (12,642) | |
Total | 118,577 | ||
Current operating lease liabilities | 22,651 | $ 22,442 | |
Non-current operating lease liabilities | 95,926 | $ 78,936 | |
Total | $ 118,577 | ||
[1] | For leases commencing prior to 2019, minimum lease payments exclude payments for real estate taxes and non-lease components. | ||
[2] | We use our functional currency adjusted incremental borrowing rate for the discount rate. |
Acquisitions (Details Textual)
Acquisitions (Details Textual) - USD ($) | Jan. 02, 2020 | Oct. 01, 2018 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | ||||||
Business acquisition, net of cash acquired | $ 11,491,000 | $ 17,194,000 | $ 144,791,000 | |||
Goodwill acquired | 9,083,000 | |||||
Forte Payment Systems, Inc | ||||||
Business Acquisition [Line Items] | ||||||
Business acquisition date | Oct. 1, 2018 | |||||
Business acquisition, cash consideration | $ 93,000,000 | |||||
Business acquisition, net of cash acquired | 85,000,000 | |||||
Cash initially held subject to certain tax filings | 13,000,000 | |||||
Potential future earn out payments | $ 18,800,000 | |||||
Potential future earn out payments measurement period | 4 years | |||||
Potential future earn out payments measurement date | Sep. 30, 2023 | |||||
Accrued earn out payments | $ 2,400,000 | 2,400,000 | ||||
Tekzenit, Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Business acquisition date | Jan. 2, 2020 | |||||
Business acquisition, cash consideration | $ 10,000,000 | |||||
Potential future earn out payments | $ 10,000,000 | |||||
Accrued earn out payments | 0 | 0 | ||||
Earn out and qualified sales payments measurement period | 3 years | |||||
Contingent purchase price liabilities | $ 1,500,000 | 1,500,000 | 1,500,000 | |||
Goodwill acquired | 9,100,000 | |||||
Tekzenit, Inc. | Acquired Client Contracts | ||||||
Business Acquisition [Line Items] | ||||||
Acquired customer contracts | $ 2,900,000 | $ 2,900,000 | ||||
Tekzenit, Inc. | Contingent Purchase Price Payments | ||||||
Business Acquisition [Line Items] | ||||||
Potential future earn out payments | 6,000,000 | |||||
Tekzenit, Inc. | Financial And Sales Criteria | ||||||
Business Acquisition [Line Items] | ||||||
Potential future earn out payments | $ 4,000,000 |
Restructuring and Reorganizat_3
Restructuring and Reorganization Charges (Details Textual) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2020USD ($)Employees | Dec. 31, 2019USD ($)Employees | Dec. 31, 2018USD ($)Employees | Dec. 31, 2017USD ($) | |
Restructuring Cost And Reserve [Line Items] | |||||||||||
Reduced workforce | Employees | 80 | 70 | 170 | ||||||||
Restructuring and reorganization charges | $ 1,000 | $ 800 | $ 2,500 | $ 1,000 | $ 1,600 | $ 1,300 | $ 1,800 | $ 5,328 | $ 4,834 | $ 8,661 | |
Restructuring and reorganization reserve | 933 | $ 822 | 933 | 822 | 4,336 | $ 4,148 | |||||
Current Liabilities | |||||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||||
Restructuring and reorganization reserve | $ 900 | 900 | |||||||||
Termination Benefits Related to Organizational Changes | |||||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||||
Restructuring and reorganization charges | $ 4,200 | $ 2,500 | 6,200 | ||||||||
Closure of Print Facility | |||||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||||
Restructuring charges and impairment of assets | 2,700 | ||||||||||
Disposition of Business Operations | |||||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||||
Restructuring and reorganization charges | (2,330) | ||||||||||
Reversal of liability related to previous disposition of a business | $ 2,300 |
Restructuring and Reorganizat_4
Restructuring and Reorganization Charges - Schedule of Activity in Business Restructuring and Reorganization Reserves (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Cost And Reserve [Line Items] | ||||||||||
Beginning Balance | $ 822 | $ 822 | $ 4,336 | $ 4,148 | ||||||
Charged to expense during period | $ 1,000 | $ 800 | $ 2,500 | 1,000 | $ 1,600 | $ 1,300 | $ 1,800 | 5,328 | 4,834 | 8,661 |
Cash payments | (4,546) | (5,538) | (9,369) | |||||||
Adjustment for asset impairment | (672) | (438) | (1,851) | |||||||
Other | 1 | 562 | 2,747 | |||||||
Ending Balance | 933 | 822 | 933 | 822 | 4,336 | |||||
Adjustment for Adoption | ASC 842 | ||||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||||
Beginning Balance | (2,934) | (2,934) | ||||||||
Ending Balance | (2,934) | (2,934) | ||||||||
Termination Benefits | ||||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||||
Beginning Balance | 822 | 822 | 1,402 | 1,116 | ||||||
Charged to expense during period | 4,152 | 2,499 | 6,555 | |||||||
Cash payments | (4,042) | (3,551) | (6,744) | |||||||
Other | 1 | 472 | 475 | |||||||
Ending Balance | $ 933 | 822 | 933 | 822 | 1,402 | |||||
Facilities Abandonment | ||||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||||
Beginning Balance | 2,934 | 3,032 | ||||||||
Charged to expense during period | 1,981 | |||||||||
Cash payments | (2,625) | |||||||||
Other | 546 | |||||||||
Ending Balance | 2,934 | |||||||||
Facilities Abandonment | ASC 842 | ||||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||||
Beginning Balance | 2,900 | 2,900 | ||||||||
Ending Balance | 2,900 | 2,900 | ||||||||
Facilities Abandonment | Adjustment for Adoption | ASC 842 | ||||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||||
Beginning Balance | $ (2,934) | (2,934) | ||||||||
Ending Balance | $ (2,934) | (2,934) | ||||||||
Disposition of Business Operations | ||||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||||
Charged to expense during period | (2,330) | |||||||||
Other | 2,330 | |||||||||
Other | ||||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||||
Charged to expense during period | 1,176 | 2,335 | 2,455 | |||||||
Cash payments | (504) | (1,987) | ||||||||
Adjustment for asset impairment | $ (672) | (438) | (1,851) | |||||||
Other | $ 90 | $ (604) |
Restructuring and Reorganizat_5
Restructuring and Reorganization Charges - Schedule of Activity in Business Restructuring and Reorganization Reserves (Parenthetical) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring reserve balance | $ 933 | $ 822 | $ 4,336 | $ 4,148 |
Facilities Abandonment | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring reserve balance | $ 2,934 | $ 3,032 | ||
ASC 842 | Facilities Abandonment | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring reserve balance | $ 2,900 |
Income Taxes - Components of Ne
Income Taxes - Components of Net Income Before Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Components of net income before income taxes | |||||||||||
Domestic | $ 77,721 | $ 93,510 | $ 80,234 | ||||||||
India | 6,245 | 4,769 | 2,173 | ||||||||
Foreign Other | 1,390 | 7,444 | 4,580 | ||||||||
Income before income taxes | $ 19,688 | $ 22,742 | $ 14,250 | $ 28,676 | $ 24,214 | $ 28,821 | $ 26,837 | $ 25,851 | $ 85,356 | $ 105,723 | $ 86,987 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current: | |||||||||||
Federal | $ 17,760 | $ 16,616 | $ 7,814 | ||||||||
State | 5,373 | 2,910 | 4,589 | ||||||||
India | 1,788 | 1,004 | 757 | ||||||||
Foreign Other | 2,990 | 2,515 | 2,784 | ||||||||
Total | 27,911 | 23,045 | 15,944 | ||||||||
Deferred: | |||||||||||
Federal | (497) | (1,943) | 4,584 | ||||||||
State | (1,031) | 624 | (619) | ||||||||
India | (387) | 36 | (152) | ||||||||
Foreign Other | 649 | 1,191 | 1,100 | ||||||||
Total | (1,266) | (92) | 4,913 | ||||||||
Total income tax provision | $ 6,423 | $ 9,176 | $ 3,884 | $ 7,162 | $ 1,633 | $ 7,262 | $ 7,458 | $ 6,600 | $ 26,645 | $ 22,953 | $ 20,857 |
Income Taxes - Income Tax Provi
Income Taxes - Income Tax Provision/(Benefit) (Details Textual) - India | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes [Line Items] | |||
Effective tax rate in India | 22.40% | 21.80% | 27.80% |
Statutory income tax rate with in SEZ | 29.00% | ||
Maximum period of reduced income tax rate on operations qualified under special economic zone | 10 years |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Difference between income tax provision computed at the statutory Federal income tax rate and financial statement income tax | |||||||||||
Provision at Federal rate of 21% | $ 17,925 | $ 22,202 | $ 18,267 | ||||||||
State income taxes, net of Federal impact | 3,430 | 2,792 | 2,985 | ||||||||
Research and experimentation credits | (2,705) | (3,314) | (4,040) | ||||||||
Stock award vesting | (540) | (3,661) | (1,513) | ||||||||
Tax uncertainties | (403) | (56) | (122) | ||||||||
Section 199 manufacturing deduction | 168 | ||||||||||
Section 162(m) compensation limitation | 4,494 | 978 | 951 | ||||||||
Foreign rate differential | 462 | 930 | 1,238 | ||||||||
Valuation allowance for deferred tax assets | 1,002 | (495) | (177) | ||||||||
Withholding Tax | 2,572 | 2,408 | 2,070 | ||||||||
Other impact of foreign operations | 621 | 227 | 685 | ||||||||
Statutory rate change | 71 | (10) | (87) | ||||||||
Other | (284) | 952 | 432 | ||||||||
Total income tax provision | $ 6,423 | $ 9,176 | $ 3,884 | $ 7,162 | $ 1,633 | $ 7,262 | $ 7,458 | $ 6,600 | $ 26,645 | $ 22,953 | $ 20,857 |
Income Taxes - Schedule of Ef_2
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Parenthetical) (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Difference between income tax provision computed at the statutory Federal income tax rate and financial statement income tax | |||
Provision at Federal rate | 21.00% | 21.00% | 21.00% |
Income Taxes - Income Tax Pro_2
Income Taxes - Income Tax Provision/(Benefit) and Deferred Income Taxes (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Taxes [Line Items] | ||
Undistributed Earnings of Foreign Subsidiaries | $ 52,000,000 | |
Deferred income tax assets benefits percentage | 100.00% | |
Valuation allowance | $ 21,700,000 | $ 19,916,000 |
Domestic Country | ||
Income Taxes [Line Items] | ||
Valuation allowance | 0 | |
Operating loss carryforward | $ 24,000,000 | 29,000,000 |
Operating Loss Carryforwards, Expiration Dates | begin to expire in 2024 and can be utilized through 2030 | |
State And Local Jurisdiction | ||
Income Taxes [Line Items] | ||
Valuation allowance | $ 2,100,000 | |
Deferred income tax assets net of federal benefit | 4,000,000 | |
Operating loss carryforward | $ 49,000,000 | 51,000,000 |
Operating Loss Carryforwards, Expiration Dates | will expire beginning in 2021 and end in 2045 | |
Foreign Country | ||
Income Taxes [Line Items] | ||
Valuation allowance | $ 19,600,000 | |
Deferred income tax assets net of federal benefit | 29,700,000 | |
Operating loss carryforward | $ 107,000,000 | $ 96,000,000 |
Operating Loss Carryforwards, Expiration Dates | 2034 |
Income Taxes - Net Deferred Inc
Income Taxes - Net Deferred Income Tax Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Net deferred income tax liabilities | ||
Deferred income tax assets | $ 59,895 | $ 71,343 |
Deferred income tax liabilities | (33,099) | (48,411) |
Valuation allowance | (21,700) | (19,916) |
Net deferred income tax assets | $ 5,096 | $ 3,016 |
Income Taxes - The Components o
Income Taxes - The Components of Net Deferred Income Tax Assets (Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Net deferred income tax assets: | ||
Accrued expenses and reserves | $ 12,587 | $ 8,810 |
Stock-based compensation | 3,285 | 4,844 |
Software | (1,532) | (1,556) |
Goodwill | (9,109) | (7,431) |
Net operating loss carryforwards | 26,893 | 25,989 |
Property and equipment | (8,816) | (4,410) |
Deferred revenue | 4,020 | 1,307 |
State Taxes | 1,804 | 1,387 |
Contingent payments | (1,017) | (1,710) |
Foreign exchange gain/loss | 1,406 | 1,340 |
Operating lease right-of-use assets and lease liabilities | 1,962 | 1,611 |
Other | 512 | 522 |
Total deferred income tax assets | 26,796 | 22,932 |
Less: valuation allowance | (21,700) | (19,916) |
Net deferred income tax assets | 5,096 | 3,016 |
Client Contracts | ||
Net deferred income tax assets: | ||
Client contracts and related intangibles | $ (5,199) | $ (7,771) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of the Beginning and Ending Balances of our Liability for Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Unrecognized tax benefits | |||
Balance, beginning of year | $ 1,540 | $ 1,668 | $ 1,915 |
Purchase accounting adjustment related to acquisitions | 160 | ||
Lapse of statute of limitations | (313) | (420) | (226) |
Additions for tax positions of prior years | 111 | 322 | 85 |
Reductions for tax positions of prior years | (105) | (30) | (106) |
Balance, end of year | $ 1,393 | $ 1,540 | $ 1,668 |
Income Taxes - Accounting for U
Income Taxes - Accounting for Uncertainty in Income Taxes (Details Textual) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Income Taxes (Textual) [Abstract] | ||||
Liability for unrecognized tax benefits | $ 1,393 | $ 1,540 | $ 1,668 | $ 1,915 |
Income tax related to accrued interest, net of federal benefit | 600 | $ 600 | $ 600 | |
Unrecognized tax benefits that would favorably impact the tax rate | 1,400 | |||
Maximum | ||||
Income Taxes (Textual) [Abstract] | ||||
Unrecognized tax benefits decrease amount over next twelve months | $ 300 |
Employee Retirement Benefit P_2
Employee Retirement Benefit Plans (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Maximum employee eligible contributions, percent | 100.00% | ||
US Based Employees | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Total contributions under plans | $ 12.1 | $ 11.3 | $ 12.8 |
Non US Based Employees | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Total contributions under plans | $ 4.8 | $ 4.1 | $ 4.5 |
Commitments, Guarantees and C_2
Commitments, Guarantees and Contingencies (Details Textual) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Other Commitments [Line Items] | |
Service agreement expiry date | Sep. 30, 2025 |
Restricted assets used to collateralize guarantees | $ 3.7 |
Money transmitter bonds | $ 14 |
Warranty Period | 90 days |
Surety Bond | |
Other Commitments [Line Items] | |
Restricted assets used to collateralize guarantees | $ 1.5 |
Cash equivalents | |
Other Commitments [Line Items] | |
Restricted assets used to collateralize guarantees | 1.7 |
Other Non-current Assets | |
Other Commitments [Line Items] | |
Restricted assets used to collateralize guarantees | $ 2 |
Stockholders' Equity (Details T
Stockholders' Equity (Details Textual) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2014 | |
Stockholders Equity Transaction [Line Items] | |||||
Remaining number of shares available for repurchase | 4,300,000 | ||||
Repurchase of common stock for employee tax withholdings, shares | 254,000 | 117,000 | 159,000 | ||
Repurchase of common stock for tax withholdings, value | $ 11.9 | $ 5.1 | $ 7.4 | ||
Cash dividends declared per common share | $ 0.94 | $ 0.89 | $ 0.84 | ||
Cash dividend | $ 30.9 | $ 29.4 | $ 28.1 | ||
Stock warrants term | 10 years | ||||
Stock warrants, exercise price | $ 26.68 | ||||
Conversion Of Comcast Current Residential Customer Accounts | |||||
Stockholders Equity Transaction [Line Items] | |||||
Issuance of stock warrants | 1,900,000 | ||||
Comcast | |||||
Stockholders Equity Transaction [Line Items] | |||||
Issuance of stock warrants | 2,900,000 | ||||
Stock warrants exercised | 400,000 | 400,000 | |||
Fair value of stock warrants | $ 24.6 | ||||
Weighted average price per share | $ 56.12 | ||||
Net cash settlement for provision of warrant agreement | $ 12.9 | ||||
Adjustment to additional paid-in capital, warrant issued | $ 9.1 | ||||
Stock warrants issued | 1,000,000 | ||||
Stock warrants vested | 0 | ||||
Beneficial ownership required for potential cash settlement | 19.99% | ||||
SEC Rule 10b5-1 Plan | |||||
Stockholders Equity Transaction [Line Items] | |||||
Repurchase of common stock, shares | 624,000 | 576,000 | 704,000 | ||
Total amount paid | $ 26.3 | $ 25.5 | $ 27.6 | ||
Weighted-average price per share | $ 42.13 | $ 44.17 | $ 39.23 |
Equity Compensation Plans - Sto
Equity Compensation Plans - Stock Incentive Plan (Details Textual) - Stock Incentive Plan 2005 | 1 Months Ended | 12 Months Ended | |
May 31, 2020shares | Dec. 31, 2020shares | Apr. 30, 2018shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Increase in number of shares approved for issuance under incentive plan | 3,600,000 | ||
Number of shares approved for issuance under incentive plan | 25,000,000 | 21,400,000 | |
Number of shares counted for every share granted | 2 | ||
Stockholder approved shares available for issuance | 5,800,000 | ||
Stockholder approved shares available for grant | 5,500,000 |
Equity Compensation Plans - Res
Equity Compensation Plans - Restricted Stock (Details Textual) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Weighted-Average Grant Date Fair Value, Awards granted | $ 40.86 | $ 41.69 | $ 45.57 |
Market value of restricted stock shares vesting | $ 32.8 | $ 17 | $ 22.7 |
Restricted stock | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Weighted-Average Grant Date Fair Value, Awards granted | $ 40.86 | ||
Market-based Awards | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Vesting period | 4 years | ||
Performance based awards granted to executive management and certain key employees shares | 0.1 | ||
Performance Shares | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Vesting period | 2 years | ||
Minimum | Restricted stock | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Vesting period | 2 years | ||
Maximum | Restricted stock | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Vesting period | 4 years |
Equity Compensation Plans - Sum
Equity Compensation Plans - Summary of Unvested Restricted Common Stock Activity (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Weighted-Average Grant Date Fair Value | |||
Weighted-Average Grant Date Fair Value, Awards granted | $ 40.86 | $ 41.69 | $ 45.57 |
Restricted stock | |||
Shares | |||
Shares, Unvested awards, beginning balance | 1,117 | ||
Shares, Awards granted | 695 | ||
Shares, Awards forfeited/cancelled | (64) | ||
Shares, Awards vested | (707) | ||
Shares, Unvested awards, ending balance | 1,041 | 1,117 | |
Weighted-Average Grant Date Fair Value | |||
Weighted-Average Grant Date Fair Value, Unvested awards, beginning balance | $ 42.60 | ||
Weighted-Average Grant Date Fair Value, Awards granted | 40.86 | ||
Weighted-Average Grant Date Fair Value, Awards forfeited/cancelled | 40.53 | ||
Weighted-Average Grant Date Fair Value, Awards vested | 43.15 | ||
Weighted-Average Grant Date Fair Value, Unvested awards, ending balance | $ 41.31 | $ 42.60 |
Equity Compensation Plans - 199
Equity Compensation Plans - 1996 Employee Stock Purchase Plan (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Value of stock purchases made pursuant to employee stock purchase plan | $ 2,523 | $ 2,227 | $ 2,311 |
1996 Employee Stock Purchase Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of shares authorized for issue to employees under the employee stock purchase plan | 1,700,000 | ||
Purchase Price of shares as a percentage of market value | 85.00% | ||
Number of shares purchased under employee stock purchase plan | 68,552 | 54,949 | 68,902 |
Value of stock purchases made pursuant to employee stock purchase plan | $ 2,500 | $ 2,300 | $ 2,400 |
Remaining number of shares eligible for purchase under employee stock purchase plan | 153,708 | ||
1996 Employee Stock Purchase Plan | Minimum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Purchase price of shares under the plan | $ 32.20 | $ 30.76 | $ 27 |
1996 Employee Stock Purchase Plan | Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Purchase price of shares under the plan | $ 42.35 | $ 48.99 | $ 39.68 |
Equity Compensation Plans - S_2
Equity Compensation Plans - Stock-Based Compensation Expense (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Stock-based compensation expense | $ 25,237 | $ 19,919 | $ 19,358 |
Total compensation cost related to unvested awards not yet recognized | $ 26,800 | ||
Stock based compensation expense period | 2 years 3 months 18 days | ||
Deferred income tax benefit related to stock-based compensation expense | $ 5,800 | 4,300 | 4,400 |
Income tax benefit realized for the tax deductions from stock-based compensation | $ 4,000 | $ 3,900 | $ 5,300 |
Equity Compensation Plans - Mod
Equity Compensation Plans - Modifications to Stock-Based Awards (Details Textual) - Separation Agreement - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended |
Aug. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Accelerated Vesting, Number | 198,000 | ||
Reversal of stock-based compensation expense | $ 2.7 | ||
Fair value of modified award recognized | $ 8.4 |
Unaudited Quarterly Financial_3
Unaudited Quarterly Financial Data - Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Quarterly Financial Information | |||||||||||
Total revenue (1) | $ 260,487 | $ 244,108 | $ 240,321 | $ 245,617 | $ 254,747 | $ 251,414 | $ 245,856 | $ 244,793 | |||
Total cost of revenue (exclusive of depreciation) | 135,165 | 131,073 | 138,153 | 131,206 | 131,871 | 132,054 | 132,234 | 128,963 | $ 535,597 | $ 525,122 | $ 449,820 |
Operating income (1)(2)(3)(4) | 23,675 | 28,947 | 19,775 | 33,159 | 30,258 | 33,420 | 30,338 | 32,093 | 105,556 | 126,109 | 104,932 |
Income before income taxes (1)(2)(3)(4) | 19,688 | 22,742 | 14,250 | 28,676 | 24,214 | 28,821 | 26,837 | 25,851 | 85,356 | 105,723 | 86,987 |
Income tax provision | (6,423) | (9,176) | (3,884) | (7,162) | (1,633) | (7,262) | (7,458) | (6,600) | $ (26,645) | $ (22,953) | $ (20,857) |
Net income (1)(2)(3)(4)(5) | $ 13,265 | $ 13,566 | $ 10,366 | $ 21,514 | $ 22,581 | $ 21,559 | $ 19,379 | $ 19,251 | |||
Basic earnings per common share (1)(2)(3)(4)(5) | $ 0.42 | $ 0.42 | $ 0.32 | $ 0.67 | $ 0.71 | $ 0.67 | $ 0.60 | $ 0.60 | $ 1.83 | $ 2.58 | $ 2.04 |
Diluted earnings per common share (1)(2)(3)(4)(5) | $ 0.41 | $ 0.42 | $ 0.32 | $ 0.66 | $ 0.70 | $ 0.66 | $ 0.60 | $ 0.59 | $ 1.82 | $ 2.55 | $ 2.01 |
Unaudited Quarterly Financial_4
Unaudited Quarterly Financial Data (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Quarterly Financial Information | |||||||||||
Restructuring and reorganization charges | $ 1,000 | $ 800 | $ 2,500 | $ 1,000 | $ 1,600 | $ 1,300 | $ 1,800 | $ 5,328 | $ 4,834 | $ 8,661 | |
Impact of restructuring and reorganization charges on EPS | $ 0.02 | $ 0.02 | $ 0.06 | $ 0.02 | $ 0.04 | $ 0.03 | $ 0.04 | ||||
Transaction related cost | $ 11,200 | $ 1,800 | 11,200 | ||||||||
Impact of transaction related cost on EPS | $ 0.23 | $ 0.03 | |||||||||
Write-off deferred contract costs of project implementation | $ 10,000 | ||||||||||
Effective income tax rate | 33.00% | 40.00% | 27.00% | 25.00% | 7.00% | 25.00% | 28.00% | 26.00% | |||
Income tax benefit | $ (6,423) | $ (9,176) | $ (3,884) | $ (7,162) | $ (1,633) | $ (7,262) | $ (7,458) | $ (6,600) | $ (26,645) | $ (22,953) | $ (20,857) |
Comcast | |||||||||||
Quarterly Financial Information | |||||||||||
Income tax benefit | $ 4,000 | ||||||||||
Stock warrants exercised | 400,000 | 400,000 |